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Should Value Investors Buy Japan Airlines (JAPSY) Stock?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Japan Airlines (JAPSY - Free Report) . JAPSY is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 8.22, which compares to its industry's average of 10.57. JAPSY's Forward P/E has been as high as 10.92 and as low as 8.11, with a median of 9.52, all within the past year.
Another notable valuation metric for JAPSY is its P/B ratio of 1.26. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. JAPSY's current P/B looks attractive when compared to its industry's average P/B of 3.15. JAPSY's P/B has been as high as 1.36 and as low as 1.01, with a median of 1.13, over the past year.
Finally, our model also underscores that JAPSY has a P/CF ratio of 4.88. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. JAPSY's P/CF compares to its industry's average P/CF of 6.56. Over the past year, JAPSY's P/CF has been as high as 5.24 and as low as 3.89, with a median of 4.42.
Investors could also keep in mind LATAM Airlines Group (LTM - Free Report) , another Transportation - Airline stock with a Zacks Rank of #1 (Strong Buy) and Value grade of A.
LATAM Airlines Group is currently trading with a Forward P/E ratio of 8.46 while its PEG ratio sits at 0.57. Both of the company's metrics compare favorably to its industry's average P/E of 10.57 and average PEG ratio of 1.00.
Over the past year, LTM's P/E has been as high as 9.33, as low as 6.73, with a median of 8.28; its PEG ratio has been as high as 0.85, as low as 0.48, with a median of 0.58 during the same time period.
Additionally, LATAM Airlines Group has a P/B ratio of 12.23 while its industry's price-to-book ratio sits at 3.15. For LTM, this valuation metric has been as high as 541.66, as low as 0.23, with a median of 12.07 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Japan Airlines and LATAM Airlines Group are likely undervalued currently. And when considering the strength of its earnings outlook, JAPSY and LTM sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Japan Airlines (JAPSY) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Japan Airlines (JAPSY - Free Report) . JAPSY is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 8.22, which compares to its industry's average of 10.57. JAPSY's Forward P/E has been as high as 10.92 and as low as 8.11, with a median of 9.52, all within the past year.
Another notable valuation metric for JAPSY is its P/B ratio of 1.26. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. JAPSY's current P/B looks attractive when compared to its industry's average P/B of 3.15. JAPSY's P/B has been as high as 1.36 and as low as 1.01, with a median of 1.13, over the past year.
Finally, our model also underscores that JAPSY has a P/CF ratio of 4.88. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. JAPSY's P/CF compares to its industry's average P/CF of 6.56. Over the past year, JAPSY's P/CF has been as high as 5.24 and as low as 3.89, with a median of 4.42.
Investors could also keep in mind LATAM Airlines Group (LTM - Free Report) , another Transportation - Airline stock with a Zacks Rank of #1 (Strong Buy) and Value grade of A.
LATAM Airlines Group is currently trading with a Forward P/E ratio of 8.46 while its PEG ratio sits at 0.57. Both of the company's metrics compare favorably to its industry's average P/E of 10.57 and average PEG ratio of 1.00.
Over the past year, LTM's P/E has been as high as 9.33, as low as 6.73, with a median of 8.28; its PEG ratio has been as high as 0.85, as low as 0.48, with a median of 0.58 during the same time period.
Additionally, LATAM Airlines Group has a P/B ratio of 12.23 while its industry's price-to-book ratio sits at 3.15. For LTM, this valuation metric has been as high as 541.66, as low as 0.23, with a median of 12.07 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Japan Airlines and LATAM Airlines Group are likely undervalued currently. And when considering the strength of its earnings outlook, JAPSY and LTM sticks out as one of the market's strongest value stocks.