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.
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.
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 Atlantic Power . AT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 5.22. This compares to its industry's average Forward P/E of 15.29. AT's Forward P/E has been as high as 10.50 and as low as 4.62, with a median of 9.29, 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. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AT has a P/S ratio of 0.71. This compares to its industry's average P/S of 1.95.
Finally, investors will want to recognize that AT has a P/CF ratio of 5.60. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. AT's P/CF compares to its industry's average P/CF of 7.58. Over the past 52 weeks, AT's P/CF has been as high as 9.06 and as low as 2.35, with a median of 2.86.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Atlantic Power is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AT feels like a great value stock at the moment.
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Is Atlantic Power (AT) a Great Value Stock Right Now?
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.
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.
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 Atlantic Power . AT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 5.22. This compares to its industry's average Forward P/E of 15.29. AT's Forward P/E has been as high as 10.50 and as low as 4.62, with a median of 9.29, 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. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AT has a P/S ratio of 0.71. This compares to its industry's average P/S of 1.95.
Finally, investors will want to recognize that AT has a P/CF ratio of 5.60. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. AT's P/CF compares to its industry's average P/CF of 7.58. Over the past 52 weeks, AT's P/CF has been as high as 9.06 and as low as 2.35, with a median of 2.86.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Atlantic Power is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AT feels like a great value stock at the moment.