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Is Adtalem Global Education (ATGE) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Adtalem Global Education (ATGE - Free Report) . ATGE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 12.39 right now. For comparison, its industry sports an average P/E of 35.48. Over the last 12 months, ATGE's Forward P/E has been as high as 16.57 and as low as 9.38, with a median of 14.17.

Investors should also note that ATGE holds a PEG ratio of 0.99. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ATGE's industry currently sports an average PEG of 1.54. Within the past year, ATGE's PEG has been as high as 1.33 and as low as 0.75, with a median of 1.08.

Finally, investors will want to recognize that ATGE has a P/CF ratio of 10.29. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. ATGE's current P/CF looks attractive when compared to its industry's average P/CF of 35.72. ATGE's P/CF has been as high as 19.82 and as low as 9.06, with a median of 16.49, all within the past year.

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


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