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Is Adtalem Global Education (ATGE) Stock Undervalued 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.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One company to watch right now is Adtalem Global Education (ATGE - Free Report) . ATGE is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Investors will also notice that ATGE has a PEG ratio of 0.92. 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. ATGE's PEG compares to its industry's average PEG of 1.51. Over the past 52 weeks, ATGE's PEG has been as high as 1.33 and as low as 0.75, with a median of 1.07.

Finally, our model also underscores that ATGE has a P/CF ratio of 9.67. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ATGE's P/CF compares 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 16.27, all within the past year.

These are only a few of the key metrics included in Adtalem Global Education'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, ATGE looks like an impressive value stock at the moment.


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