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Are Investors Undervaluing Atlanticus (ATLC) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 stock to keep an eye on is Atlanticus (ATLC - Free Report) . ATLC is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value.

Another notable valuation metric for ATLC is its P/B ratio of 1.9. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.05. ATLC's P/B has been as high as 2.08 and as low as 1.11, with a median of 1.54, over the past year.

Finally, investors should note that ATLC has a P/CF ratio of 9.19. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 22.57. Over the past 52 weeks, ATLC's P/CF has been as high as 9.96 and as low as 4.95, with a median of 6.94.

These are only a few of the key metrics included in Atlanticus'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, ATLC looks like an impressive value stock at the moment.

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