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Are Investors Undervaluing LATAM Airlines Group (LTM) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company value investors might notice is LATAM Airlines Group (LTM - Free Report) . LTM is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.29. 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 8.42.
Investors will also notice that LTM has a PEG ratio of 0.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LTM's PEG compares to its industry's average PEG of 0.74. LTM's PEG has been as high as 0.85 and as low as 0.37, with a median of 0.58, all within the past year.
These are only a few of the key metrics included in LATAM Airlines Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, LTM looks like an impressive value stock at the moment.
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Are Investors Undervaluing LATAM Airlines Group (LTM) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company value investors might notice is LATAM Airlines Group (LTM - Free Report) . LTM is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.29. 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 8.42.
Investors will also notice that LTM has a PEG ratio of 0.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LTM's PEG compares to its industry's average PEG of 0.74. LTM's PEG has been as high as 0.85 and as low as 0.37, with a median of 0.58, all within the past year.
These are only a few of the key metrics included in LATAM Airlines Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, LTM looks like an impressive value stock at the moment.