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Should Value Investors Buy ANA (ALNPY) 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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is ANA (ALNPY - Free Report) . ALNPY is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 3.85, while its industry has an average P/E of 11.37. Over the past 52 weeks, ALNPY's Forward P/E has been as high as 11.64 and as low as 3.50, with a median of 9.97.

We should also highlight that ALNPY has a P/B ratio of 1.25. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.42. Over the past year, ALNPY's P/B has been as high as 1.39 and as low as 1.08, with a median of 1.21.

If you're looking for another solid Transportation - Airline value stock, take a look at International Consolidated Airlines Group (ICAGY - Free Report) . ICAGY is a Zacks Rank of #2 (Buy) stock with a Value score of A.

Shares of International Consolidated Airlines Group are currently trading at a forward earnings multiple of 7.12 and a PEG ratio of 0.85 compared to its industry's P/E and PEG ratios of 11.37 and 1.11, respectively.

Over the past year, ICAGY's P/E has been as high as 7.29, as low as 3.97, with a median of 5.60; its PEG ratio has been as high as 1.07, as low as 0.56, with a median of 0.77 during the same time period.

Furthermore, International Consolidated Airlines Group holds a P/B ratio of 2.60 and its industry's price-to-book ratio is 3.42. ICAGY's P/B has been as high as 3.30, as low as 0.78, with a median of 2.59 over the past 12 months.

Value investors will likely look at more than just these metrics, but the above data helps show that ANA and International Consolidated Airlines Group are likely undervalued currently. And when considering the strength of its earnings outlook, ALNPY and ICAGY sticks out as one of the market's strongest value stocks.


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ANA Holdings Inc. (ALNPY) - free report >>

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