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Should Value Investors Buy Atento (ATTO) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 Atento . ATTO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 14.53, which compares to its industry's average of 22.71. ATTO's Forward P/E has been as high as 1,080.14 and as low as -29,111.37, with a median of 12.50, all within the past year.

Investors should also note that ATTO holds a PEG ratio of 1.45. 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. ATTO's PEG compares to its industry's average PEG of 2.12. ATTO's PEG has been as high as 108.01 and as low as -2,911.14, with a median of 1.25, all within the past year.

Another valuation metric that we should highlight is ATTO's P/B ratio of 2.92. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 7.06. ATTO's P/B has been as high as 3.22 and as low as 0.36, with a median of 1.34, over the past year.

Finally, we should also recognize that ATTO has a P/CF ratio of 3.75. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.12. Within the past 12 months, ATTO's P/CF has been as high as 10.75 and as low as 0.61, with a median of 2.57.

These are only a few of the key metrics included in Atento'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, ATTO looks like an impressive value stock at the moment.

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