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Are Investors Undervaluing Air Canada (ACDVF) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Air Canada (ACDVF - Free Report) . ACDVF is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 4.71 right now. For comparison, its industry sports an average P/E of 10.54. Over the last 12 months, ACDVF's Forward P/E has been as high as 19.41 and as low as -5.39, with a median of 11.60.
We also note that ACDVF holds a PEG ratio of 0.20. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ACDVF's industry currently sports an average PEG of 0.38. Over the past 52 weeks, ACDVF's PEG has been as high as 0.21 and as low as 0.20, with a median of 0.20.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ACDVF has a P/S ratio of 0.33. This compares to its industry's average P/S of 0.34.
Finally, investors will want to recognize that ACDVF has a P/CF ratio of 1.83. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.69. Within the past 12 months, ACDVF's P/CF has been as high as 9.67 and as low as -81.66, with a median of 1.83.
Alaska Air Group (ALK - Free Report) may be another strong Transportation - Airline stock to add to your shortlist. ALK is a # 2 (Buy) stock with a Value grade of A.
Shares of Alaska Air Group currently holds a Forward P/E ratio of 7.66, and its PEG ratio is 0.74. In comparison, its industry sports average P/E and PEG ratios of 10.54 and 0.38.
Over the last 12 months, ALK's P/E has been as high as 10.03, as low as 5.47, with a median of 7.04, and its PEG ratio has been as high as 0.85, as low as 0.25, with a median of 0.36.
Furthermore, Alaska Air Group holds a P/B ratio of 1.18 and its industry's price-to-book ratio is 3.49. ALK's P/B has been as high as 1.82, as low as 0.97, with a median of 1.47 over the past 12 months.
These are just a handful of the figures considered in Air Canada and Alaska Air Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ACDVF and ALK is an impressive value stock right now.
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Are Investors Undervaluing Air Canada (ACDVF) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Air Canada (ACDVF - Free Report) . ACDVF is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 4.71 right now. For comparison, its industry sports an average P/E of 10.54. Over the last 12 months, ACDVF's Forward P/E has been as high as 19.41 and as low as -5.39, with a median of 11.60.
We also note that ACDVF holds a PEG ratio of 0.20. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ACDVF's industry currently sports an average PEG of 0.38. Over the past 52 weeks, ACDVF's PEG has been as high as 0.21 and as low as 0.20, with a median of 0.20.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ACDVF has a P/S ratio of 0.33. This compares to its industry's average P/S of 0.34.
Finally, investors will want to recognize that ACDVF has a P/CF ratio of 1.83. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.69. Within the past 12 months, ACDVF's P/CF has been as high as 9.67 and as low as -81.66, with a median of 1.83.
Alaska Air Group (ALK - Free Report) may be another strong Transportation - Airline stock to add to your shortlist. ALK is a # 2 (Buy) stock with a Value grade of A.
Shares of Alaska Air Group currently holds a Forward P/E ratio of 7.66, and its PEG ratio is 0.74. In comparison, its industry sports average P/E and PEG ratios of 10.54 and 0.38.
Over the last 12 months, ALK's P/E has been as high as 10.03, as low as 5.47, with a median of 7.04, and its PEG ratio has been as high as 0.85, as low as 0.25, with a median of 0.36.
Furthermore, Alaska Air Group holds a P/B ratio of 1.18 and its industry's price-to-book ratio is 3.49. ALK's P/B has been as high as 1.82, as low as 0.97, with a median of 1.47 over the past 12 months.
These are just a handful of the figures considered in Air Canada and Alaska Air Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ACDVF and ALK is an impressive value stock right now.