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Is LATAM Airlines Group (LTM) Stock Undervalued Right Now?
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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
LATAM Airlines Group (LTM - Free Report) is a stock many investors are watching right now. LTM is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.01. This compares to its industry's average Forward P/E of 12.01. Over the last 12 months, LTM's Forward P/E has been as high as 9.37 and as low as 6.73, with a median of 8.38.
LTM is also sporting a PEG ratio of 0.61. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. LTM's PEG compares to its industry's average PEG of 1.15. 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.
Another great Transportation - Airline stock you could consider is Controladora Vuela Compania de Aviacion, B. de C.V. (VLRS - Free Report) , which is a Zacks Rank of #2 (Buy) stock with a Value Score of A.
Controladora Vuela Compania de Aviacion, B. de C.V. also has a P/B ratio of 1.63 compared to its industry's price-to-book ratio of 3.73. Over the past year, its P/B ratio has been as high as 3.10, as low as 1.33, with a median of 2.32.
These figures are just a handful of the metrics value investors tend to look at, but they help show that LATAM Airlines Group and Controladora Vuela Compania de Aviacion, B. de C.V. are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LTM and VLRS feels like a great value stock at the moment.
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Is LATAM Airlines Group (LTM) Stock Undervalued Right Now?
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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
LATAM Airlines Group (LTM - Free Report) is a stock many investors are watching right now. LTM is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.01. This compares to its industry's average Forward P/E of 12.01. Over the last 12 months, LTM's Forward P/E has been as high as 9.37 and as low as 6.73, with a median of 8.38.
LTM is also sporting a PEG ratio of 0.61. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. LTM's PEG compares to its industry's average PEG of 1.15. 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.
Another great Transportation - Airline stock you could consider is Controladora Vuela Compania de Aviacion, B. de C.V. (VLRS - Free Report) , which is a Zacks Rank of #2 (Buy) stock with a Value Score of A.
Controladora Vuela Compania de Aviacion, B. de C.V. also has a P/B ratio of 1.63 compared to its industry's price-to-book ratio of 3.73. Over the past year, its P/B ratio has been as high as 3.10, as low as 1.33, with a median of 2.32.
These figures are just a handful of the metrics value investors tend to look at, but they help show that LATAM Airlines Group and Controladora Vuela Compania de Aviacion, B. de C.V. are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LTM and VLRS feels like a great value stock at the moment.