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Is Spirit (SAVE) Stock Undervalued Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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

Investors should also note that SAVE holds a PEG ratio of 0.36. 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. SAVE's PEG compares to its industry's average PEG of 0.73. Over the last 12 months, SAVE's PEG has been as high as 4.90 and as low as 0.34, with a median of 0.51.

Another valuation metric that we should highlight is SAVE's P/B ratio of 2.12. 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 2.41. Over the past 12 months, SAVE's P/B has been as high as 2.40 and as low as 1.39, with a median of 1.68.

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


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