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Should Value Investors Buy Air Canada (ACDVF) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Air Canada (ACDVF - Free Report) is a stock many investors are watching right now. ACDVF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 4.06, while its industry has an average P/E of 10.05. Over the past 52 weeks, ACDVF's Forward P/E has been as high as 19.41 and as low as 3.88, with a median of 10.64.
Investors should also note that ACDVF holds a PEG ratio of 0.20. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ACDVF's PEG compares to its industry's average PEG of 0.50. ACDVF's PEG has been as high as 0.21 and as low as 0.20, with a median of 0.20, all within the past year.
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 0.3. This compares to its industry's average P/S of 0.39.
Finally, we should also recognize that ACDVF has a P/CF ratio of 1.72. 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. ACDVF's current P/CF looks attractive when compared to its industry's average P/CF of 5.87. Over the past 52 weeks, ACDVF's P/CF has been as high as 9.27 and as low as -133.81, with a median of 1.86.
Investors could also keep in mind SkyWest (SKYW - Free Report) , an Transportation - Airline stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Shares of SkyWest currently holds a Forward P/E ratio of 11.43, and its PEG ratio is 0.89. In comparison, its industry sports average P/E and PEG ratios of 10.05 and 0.50.
SKYW's price-to-earnings ratio has been as high as 11,210.77 and as low as -3,534.23, with a median of 10.58, while its PEG ratio has been as high as 1.84 and as low as 0.79, with a median of 0.98, all within the past year.
SkyWest also has a P/B ratio of 1.13 compared to its industry's price-to-book ratio of 3.35. Over the past year, its P/B ratio has been as high as 1.13, as low as 0.39, with a median of 0.79.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Air Canada and SkyWest are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ACDVF and SKYW feels like a great value stock at the moment.
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Should Value Investors Buy Air Canada (ACDVF) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Air Canada (ACDVF - Free Report) is a stock many investors are watching right now. ACDVF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 4.06, while its industry has an average P/E of 10.05. Over the past 52 weeks, ACDVF's Forward P/E has been as high as 19.41 and as low as 3.88, with a median of 10.64.
Investors should also note that ACDVF holds a PEG ratio of 0.20. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ACDVF's PEG compares to its industry's average PEG of 0.50. ACDVF's PEG has been as high as 0.21 and as low as 0.20, with a median of 0.20, all within the past year.
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 0.3. This compares to its industry's average P/S of 0.39.
Finally, we should also recognize that ACDVF has a P/CF ratio of 1.72. 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. ACDVF's current P/CF looks attractive when compared to its industry's average P/CF of 5.87. Over the past 52 weeks, ACDVF's P/CF has been as high as 9.27 and as low as -133.81, with a median of 1.86.
Investors could also keep in mind SkyWest (SKYW - Free Report) , an Transportation - Airline stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Shares of SkyWest currently holds a Forward P/E ratio of 11.43, and its PEG ratio is 0.89. In comparison, its industry sports average P/E and PEG ratios of 10.05 and 0.50.
SKYW's price-to-earnings ratio has been as high as 11,210.77 and as low as -3,534.23, with a median of 10.58, while its PEG ratio has been as high as 1.84 and as low as 0.79, with a median of 0.98, all within the past year.
SkyWest also has a P/B ratio of 1.13 compared to its industry's price-to-book ratio of 3.35. Over the past year, its P/B ratio has been as high as 1.13, as low as 0.39, with a median of 0.79.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Air Canada and SkyWest are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ACDVF and SKYW feels like a great value stock at the moment.