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Is Atento (ATTO) 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.

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) and an A for Value. The stock holds a P/E ratio of 18.49, while its industry has an average P/E of 22.57. Over the past 52 weeks, ATTO's Forward P/E has been as high as 1,080.14 and as low as -29,111.37, with a median of 13.50.

We also note that ATTO holds a PEG ratio of 1.85. 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. ATTO's PEG compares to its industry's average PEG of 2.11. ATTO's PEG has been as high as 108.01 and as low as -2,911.14, with a median of 1.35, all within the past year.

Investors should also recognize that ATTO has a P/B ratio of 4.09. The P/B ratio is used to compare a stock's market value with 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. Over the past 12 months, ATTO's P/B has been as high as 4.16 and as low as 0.36, with a median of 1.46.

Finally, our model also underscores that ATTO has a P/CF ratio of 5.24. 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. ATTO's P/CF compares to 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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