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Are Investors Undervaluing Atlas Air Worldwide (AAWW) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 company to watch right now is Atlas Air Worldwide (AAWW - Free Report) . AAWW is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 6.46, while its industry has an average P/E of 12.15. AAWW's Forward P/E has been as high as 11.32 and as low as 5.12, with a median of 8.68, all within the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AAWW has a P/S ratio of 0.47. This compares to its industry's average P/S of 0.56.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Atlas Air Worldwide is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AAWW feels like a great value stock at the moment.




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