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Are Investors Undervaluing Spirit (SAVE) 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Spirit (SAVE - Free Report) is a stock many investors are watching right now. SAVE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Investors will also notice that SAVE has a PEG ratio of 0.30. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SAVE's PEG compares to its industry's average PEG of 0.49. Over the last 12 months, SAVE's PEG has been as high as 3.14 and as low as 0.29, with a median of 0.49.

We should also highlight that SAVE has a P/B ratio of 2.18. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.56. Within the past 52 weeks, SAVE's P/B has been as high as 2.40 and as low as 1.39, with a median of 1.73.

These are just a handful of the figures considered in Spirit's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that SAVE is an impressive value stock right now.


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