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Is Air Canada (ACDVF) Stock Undervalued Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Air Canada (ACDVF - Free Report) is a stock many investors are watching right now. ACDVF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 5.03 right now. For comparison, its industry sports an average P/E of 10.79. Over the past year, ACDVF's Forward P/E has been as high as 19.41 and as low as -5.39, with a median of 11.97.
We also note that ACDVF holds a PEG ratio of 0.20. 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. ACDVF's PEG compares to its industry's average PEG of 0.37. Over the last 12 months, ACDVF's PEG has been as high as 0.21 and as low as 0.20, with a median of 0.20.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ACDVF has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.32.
Finally, our model also underscores that ACDVF has a P/CF ratio of 1.76. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.05. ACDVF's P/CF has been as high as 9.27 and as low as -133.81, with a median of 1.78, all within the past year.
Another great Transportation - Airline stock you could consider is SkyWest (SKYW - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
SkyWest is currently trading with a Forward P/E ratio of 10.19 while its PEG ratio sits at 0.89. Both of the company's metrics compare favorably to its industry's average P/E of 10.79 and average PEG ratio of 0.37.
SKYW's Forward P/E has been as high as 11,210.77 and as low as -3,534.23, with a median of 13.98. During the same time period, its PEG ratio has been as high as 1.84, as low as 0.79, with a median of 0.98.
Additionally, SkyWest has a P/B ratio of 0.94 while its industry's price-to-book ratio sits at 2.97. For SKYW, this valuation metric has been as high as 0.96, as low as 0.31, with a median of 0.72 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Air Canada and SkyWest are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ACDVF and SKYW feels like a great value stock at the moment.
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Is Air Canada (ACDVF) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Air Canada (ACDVF - Free Report) is a stock many investors are watching right now. ACDVF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 5.03 right now. For comparison, its industry sports an average P/E of 10.79. Over the past year, ACDVF's Forward P/E has been as high as 19.41 and as low as -5.39, with a median of 11.97.
We also note that ACDVF holds a PEG ratio of 0.20. 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. ACDVF's PEG compares to its industry's average PEG of 0.37. Over the last 12 months, ACDVF's PEG has been as high as 0.21 and as low as 0.20, with a median of 0.20.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ACDVF has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.32.
Finally, our model also underscores that ACDVF has a P/CF ratio of 1.76. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.05. ACDVF's P/CF has been as high as 9.27 and as low as -133.81, with a median of 1.78, all within the past year.
Another great Transportation - Airline stock you could consider is SkyWest (SKYW - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
SkyWest is currently trading with a Forward P/E ratio of 10.19 while its PEG ratio sits at 0.89. Both of the company's metrics compare favorably to its industry's average P/E of 10.79 and average PEG ratio of 0.37.
SKYW's Forward P/E has been as high as 11,210.77 and as low as -3,534.23, with a median of 13.98. During the same time period, its PEG ratio has been as high as 1.84, as low as 0.79, with a median of 0.98.
Additionally, SkyWest has a P/B ratio of 0.94 while its industry's price-to-book ratio sits at 2.97. For SKYW, this valuation metric has been as high as 0.96, as low as 0.31, with a median of 0.72 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Air Canada and SkyWest are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ACDVF and SKYW feels like a great value stock at the moment.