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Should Value Investors Buy LATAM Airlines Group (LTM) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
LATAM Airlines Group (LTM - Free Report) is a stock many investors are watching right now. LTM is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 8.88. This compares to its industry's average Forward P/E of 11.05. LTM's Forward P/E has been as high as 9.33 and as low as 6.73, with a median of 8.30, all within the past year.
We also note that LTM holds a PEG ratio of 0.60. 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. LTM's industry currently sports an average PEG of 1.05. 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 just a handful of the figures considered in LATAM Airlines 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 LTM is an impressive value stock right now.
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Should Value Investors Buy LATAM Airlines Group (LTM) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
LATAM Airlines Group (LTM - Free Report) is a stock many investors are watching right now. LTM is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 8.88. This compares to its industry's average Forward P/E of 11.05. LTM's Forward P/E has been as high as 9.33 and as low as 6.73, with a median of 8.30, all within the past year.
We also note that LTM holds a PEG ratio of 0.60. 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. LTM's industry currently sports an average PEG of 1.05. 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 just a handful of the figures considered in LATAM Airlines 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 LTM is an impressive value stock right now.