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Should Value Investors Buy Air Transport Services Group (ATSG) Stock?

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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.

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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now 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 is trading with P/E ratio of 9.04 right now. For comparison, its industry sports an average P/E of 12.92. 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 10.84.

Finally, investors should note that ATSG has a P/CF ratio of 2.88. 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. ATSG's current P/CF looks attractive when compared to its industry's average P/CF of 8.37. Over the past 52 weeks, ATSG's P/CF has been as high as 4.62 and as low as 2.30, with a median of 3.23.

FedEx (FDX - Free Report) may be another strong Transportation - Air Freight and Cargo stock to add to your shortlist. FDX is a # 2 (Buy) stock with a Value grade of A.

FedEx is trading at a forward earnings multiple of 11.59 at the moment, with a PEG ratio of 0.97. This compares to its industry's average P/E of 12.92 and average PEG ratio of 1.22.


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