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Is Allegiant (ALGT) Stock Undervalued 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Allegiant (ALGT - Free Report) . ALGT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Another valuation metric that we should highlight is ALGT's P/B ratio of 1.46. 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. ALGT's current P/B looks attractive when compared to its industry's average P/B of 3.82. ALGT's P/B has been as high as 2.58 and as low as 0.98, with a median of 1.43, over the past year.

Finally, our model also underscores that ALGT has a P/CF ratio of 8.82. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 11. ALGT's P/CF has been as high as 9.80 and as low as 5.72, with a median of 8.22, all within the past year.

Another great Transportation - Airline stock you could consider is United Airlines (UAL - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

United Airlines is currently trading with a Forward P/E ratio of 4.74 while its PEG ratio sits at 0.10. Both of the company's metrics compare favorably to its industry's average P/E of 9.15 and average PEG ratio of 0.29.


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