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Should Value Investors Buy Atlanticus (ATLC) 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.

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 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.

Atlanticus (ATLC - Free Report) is a stock many investors are watching right now. ATLC is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A.

Another notable valuation metric for ATLC is its P/B ratio of 1.9. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 3.11. Over the past year, ATLC's P/B has been as high as 2.08 and as low as 1.11, with a median of 1.54.

Finally, our model also underscores 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. ATLC's P/CF compares to its industry's average P/CF of 22.98. ATLC's P/CF has been as high as 9.96 and as low as 4.95, with a median of 6.94, all within the past year.

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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