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Should Value Investors Buy LATAM Airlines Group (LTM) Stock?
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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.
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.
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 LATAM Airlines Group (LTM - Free Report) . LTM is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.75, while its industry has an average P/E of 12.09. Over the past year, LTM's Forward P/E has been as high as 9.75 and as low as 6.73, with a median of 8.44.
Investors should also note that LTM holds a PEG ratio of 0.44. 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. LTM's PEG compares to its industry's average PEG of 0.71. LTM's PEG has been as high as 0.85 and as low as 0.37, with a median of 0.57, all within the past year.
SkyWest (SKYW - Free Report) may be another strong Transportation - Airline stock to add to your shortlist. SKYW is a Zacks Rank of #1 (Strong Buy) stock with a Value grade of A.
Shares of SkyWest are currently trading at a forward earnings multiple of 11.51 and a PEG ratio of 1.13 compared to its industry's P/E and PEG ratios of 12.09 and 0.71, respectively.
SKYW's Forward P/E has been as high as 14.41 and as low as 8.62, with a median of 11.24. During the same time period, its PEG ratio has been as high as 1.35, as low as 0.98, with a median of 1.16.
Additionally, SkyWest has a P/B ratio of 1.86 while its industry's price-to-book ratio sits at 3.77. For SKYW, this valuation metric has been as high as 2.02, as low as 1.30, with a median of 1.68 over the past year.
These are only a few of the key metrics included in LATAM Airlines Group and SkyWest strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, LTM and SKYW look like an impressive value stock at the moment.
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Should Value Investors Buy LATAM Airlines Group (LTM) Stock?
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.
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.
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 LATAM Airlines Group (LTM - Free Report) . LTM is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.75, while its industry has an average P/E of 12.09. Over the past year, LTM's Forward P/E has been as high as 9.75 and as low as 6.73, with a median of 8.44.
Investors should also note that LTM holds a PEG ratio of 0.44. 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. LTM's PEG compares to its industry's average PEG of 0.71. LTM's PEG has been as high as 0.85 and as low as 0.37, with a median of 0.57, all within the past year.
SkyWest (SKYW - Free Report) may be another strong Transportation - Airline stock to add to your shortlist. SKYW is a Zacks Rank of #1 (Strong Buy) stock with a Value grade of A.
Shares of SkyWest are currently trading at a forward earnings multiple of 11.51 and a PEG ratio of 1.13 compared to its industry's P/E and PEG ratios of 12.09 and 0.71, respectively.
SKYW's Forward P/E has been as high as 14.41 and as low as 8.62, with a median of 11.24. During the same time period, its PEG ratio has been as high as 1.35, as low as 0.98, with a median of 1.16.
Additionally, SkyWest has a P/B ratio of 1.86 while its industry's price-to-book ratio sits at 3.77. For SKYW, this valuation metric has been as high as 2.02, as low as 1.30, with a median of 1.68 over the past year.
These are only a few of the key metrics included in LATAM Airlines Group and SkyWest strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, LTM and SKYW look like an impressive value stock at the moment.