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Should Value Investors Buy International Consolidated Airlines Group (ICAGY) 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is International Consolidated Airlines Group (ICAGY - Free Report) . ICAGY is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.24 right now. For comparison, its industry sports an average P/E of 11.72. Over the last 12 months, ICAGY's Forward P/E has been as high as 7.29 and as low as 3.97, with a median of 5.66.
Investors should also note that ICAGY holds a PEG ratio of 0.87. 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. ICAGY's PEG compares to its industry's average PEG of 1.12. ICAGY's PEG has been as high as 1.07 and as low as 0.56, with a median of 0.77, all within the past year.
Another notable valuation metric for ICAGY is its P/B ratio of 2.6. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.62. ICAGY's P/B has been as high as 3.30 and as low as 0.78, with a median of 2.65, over the past year.
Finally, we should also recognize that ICAGY has a P/CF ratio of 4.55. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. ICAGY's current P/CF looks attractive when compared to its industry's average P/CF of 7.54. ICAGY's P/CF has been as high as 4.57 and as low as 0.76, with a median of 2.94, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that International Consolidated Airlines Group is likely undervalued currently. And when considering the strength of its earnings outlook, ICAGY sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy International Consolidated Airlines Group (ICAGY) 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is International Consolidated Airlines Group (ICAGY - Free Report) . ICAGY is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.24 right now. For comparison, its industry sports an average P/E of 11.72. Over the last 12 months, ICAGY's Forward P/E has been as high as 7.29 and as low as 3.97, with a median of 5.66.
Investors should also note that ICAGY holds a PEG ratio of 0.87. 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. ICAGY's PEG compares to its industry's average PEG of 1.12. ICAGY's PEG has been as high as 1.07 and as low as 0.56, with a median of 0.77, all within the past year.
Another notable valuation metric for ICAGY is its P/B ratio of 2.6. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.62. ICAGY's P/B has been as high as 3.30 and as low as 0.78, with a median of 2.65, over the past year.
Finally, we should also recognize that ICAGY has a P/CF ratio of 4.55. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. ICAGY's current P/CF looks attractive when compared to its industry's average P/CF of 7.54. ICAGY's P/CF has been as high as 4.57 and as low as 0.76, with a median of 2.94, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that International Consolidated Airlines Group is likely undervalued currently. And when considering the strength of its earnings outlook, ICAGY sticks out as one of the market's strongest value stocks.