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Should Value Investors Buy Atlanticus (ATLC) 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 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 company value investors might notice is Atlanticus (ATLC - Free Report) . ATLC is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 9.89, which compares to its industry's average of 13.04. Over the past 52 weeks, ATLC's Forward P/E has been as high as 12.46 and as low as 6.34, with a median of 8.26.

Investors should also recognize that ATLC has a 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 3.00. 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.

Value investors will likely look at more than just these metrics, but the above data helps show that Atlanticus is likely undervalued currently. And when considering the strength of its earnings outlook, ATLC sticks out as one of the market's strongest value stocks.

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