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Are Investors Undervaluing Air Transport Services Group (ATSG) 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Air Transport Services Group (ATSG - Free Report) . ATSG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.84, while its industry has an average P/E of 14.63. Over the past 52 weeks, ATSG's Forward P/E has been as high as 13.14 and as low as 7.34, with a median of 10.99.
Finally, our model also underscores that ATSG has a P/CF ratio of 3.30. 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. ATSG's current P/CF looks attractive when compared to its industry's average P/CF of 9.52. ATSG's P/CF has been as high as 4.62 and as low as 2.30, with a median of 3.26, all within the past year.
If you're looking for another solid Transportation - Air Freight and Cargo value stock, take a look at FedEx (FDX - Free Report) . FDX is a # 2 (Buy) stock with a Value score of A.
Shares of FedEx are currently trading at a forward earnings multiple of 13.50 and a PEG ratio of 1.13 compared to its industry's P/E and PEG ratios of 14.63 and 1.38, respectively.
Over the last 12 months, FDX's P/E has been as high as 15.06, as low as 9.39, with a median of 13, and its PEG ratio has been as high as 1.26, as low as 0.78, with a median of 1.08.
FedEx also has a P/B ratio of 2.46 compared to its industry's price-to-book ratio of 5.32. Over the past year, its P/B ratio has been as high as 2.61, as low as 1.55, with a median of 2.23.
Value investors will likely look at more than just these metrics, but the above data helps show that Air Transport Services Group and FedEx are likely undervalued currently. And when considering the strength of its earnings outlook, ATSG and FDX sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Air Transport Services Group (ATSG) Right Now?
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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Air Transport Services Group (ATSG - Free Report) . ATSG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 10.84, while its industry has an average P/E of 14.63. Over the past 52 weeks, ATSG's Forward P/E has been as high as 13.14 and as low as 7.34, with a median of 10.99.
Finally, our model also underscores that ATSG has a P/CF ratio of 3.30. 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. ATSG's current P/CF looks attractive when compared to its industry's average P/CF of 9.52. ATSG's P/CF has been as high as 4.62 and as low as 2.30, with a median of 3.26, all within the past year.
If you're looking for another solid Transportation - Air Freight and Cargo value stock, take a look at FedEx (FDX - Free Report) . FDX is a # 2 (Buy) stock with a Value score of A.
Shares of FedEx are currently trading at a forward earnings multiple of 13.50 and a PEG ratio of 1.13 compared to its industry's P/E and PEG ratios of 14.63 and 1.38, respectively.
Over the last 12 months, FDX's P/E has been as high as 15.06, as low as 9.39, with a median of 13, and its PEG ratio has been as high as 1.26, as low as 0.78, with a median of 1.08.
FedEx also has a P/B ratio of 2.46 compared to its industry's price-to-book ratio of 5.32. Over the past year, its P/B ratio has been as high as 2.61, as low as 1.55, with a median of 2.23.
Value investors will likely look at more than just these metrics, but the above data helps show that Air Transport Services Group and FedEx are likely undervalued currently. And when considering the strength of its earnings outlook, ATSG and FDX sticks out as one of the market's strongest value stocks.