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Should Value Investors Buy LATAM Airlines Group (LTM) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company to watch right now is LATAM Airlines Group (LTM - Free Report) . LTM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.12, while its industry has an average P/E of 11.16. LTM's Forward P/E has been as high as 9.33 and as low as 6.73, with a median of 8.19, all within the past year.
We also note that LTM holds a PEG ratio of 0.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LTM's PEG compares to its industry's average PEG of 0.95. Over the last 12 months, LTM's PEG has been as high as 0.85 and as low as 0.48, with a median of 0.58.
These are only a few of the key metrics included in LATAM Airlines Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, LTM looks like an impressive value stock at the moment.
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Should Value Investors Buy LATAM Airlines Group (LTM) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company to watch right now is LATAM Airlines Group (LTM - Free Report) . LTM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 8.12, while its industry has an average P/E of 11.16. LTM's Forward P/E has been as high as 9.33 and as low as 6.73, with a median of 8.19, all within the past year.
We also note that LTM holds a PEG ratio of 0.55. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. LTM's PEG compares to its industry's average PEG of 0.95. Over the last 12 months, LTM's PEG has been as high as 0.85 and as low as 0.48, with a median of 0.58.
These are only a few of the key metrics included in LATAM Airlines Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, LTM looks like an impressive value stock at the moment.