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Should Value Investors Buy Air Canada (ACDVF) 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Air Canada (ACDVF - Free Report) . ACDVF is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 7.72, while its industry has an average P/E of 9.72. ACDVF's Forward P/E has been as high as 10.08 and as low as 5.43, with a median of 7.77, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ACDVF has a P/S ratio of 0.26. This compares to its industry's average P/S of 0.68.
If you're looking for another solid Transportation - Airline value stock, take a look at Cathay Pacific Airways (CPCAY - Free Report) . CPCAY is a Zacks Rank of #2 (Buy) stock with a Value score of A.
Cathay Pacific Airways also has a P/B ratio of 1.32 compared to its industry's price-to-book ratio of 3.14. Over the past year, its P/B ratio has been as high as 1.51, as low as 0.83, with a median of 1.27.
Value investors will likely look at more than just these metrics, but the above data helps show that Air Canada and Cathay Pacific Airways are likely undervalued currently. And when considering the strength of its earnings outlook, ACDVF and CPCAY sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy Air Canada (ACDVF) 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Air Canada (ACDVF - Free Report) . ACDVF is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 7.72, while its industry has an average P/E of 9.72. ACDVF's Forward P/E has been as high as 10.08 and as low as 5.43, with a median of 7.77, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ACDVF has a P/S ratio of 0.26. This compares to its industry's average P/S of 0.68.
If you're looking for another solid Transportation - Airline value stock, take a look at Cathay Pacific Airways (CPCAY - Free Report) . CPCAY is a Zacks Rank of #2 (Buy) stock with a Value score of A.
Cathay Pacific Airways also has a P/B ratio of 1.32 compared to its industry's price-to-book ratio of 3.14. Over the past year, its P/B ratio has been as high as 1.51, as low as 0.83, with a median of 1.27.
Value investors will likely look at more than just these metrics, but the above data helps show that Air Canada and Cathay Pacific Airways are likely undervalued currently. And when considering the strength of its earnings outlook, ACDVF and CPCAY sticks out as one of the market's strongest value stocks.