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Should Value Investors Buy LATAM Airlines Group (LTM) Stock?
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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.
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.
One stock to keep an eye on is LATAM Airlines Group (LTM - Free Report) . LTM is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.88, while its industry has an average P/E of 10.33. LTM's Forward P/E has been as high as 9.75 and as low as 6.73, with a median of 8.47, all within the past year.
Investors should also note that LTM holds a PEG ratio of 0.40. 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 0.52. 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.
These figures are just a handful of the metrics value investors tend to look at, but they help show that LATAM Airlines Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LTM feels like a great value stock at the moment.
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Should Value Investors Buy LATAM Airlines Group (LTM) Stock?
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.
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.
One stock to keep an eye on is LATAM Airlines Group (LTM - Free Report) . LTM is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.88, while its industry has an average P/E of 10.33. LTM's Forward P/E has been as high as 9.75 and as low as 6.73, with a median of 8.47, all within the past year.
Investors should also note that LTM holds a PEG ratio of 0.40. 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 0.52. 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.
These figures are just a handful of the metrics value investors tend to look at, but they help show that LATAM Airlines Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LTM feels like a great value stock at the moment.