Is Adtalem Global Education (ATGE) Stock Undervalued 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, 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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Adtalem Global Education (ATGE). ATGE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 11.15, which compares to its industry's average of 32.56. Over the past 52 weeks, ATGE's Forward P/E has been as high as 16.57 and as low as 7.68, with a median of 13.13.
We also note that ATGE holds a PEG ratio of 0.89. 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. ATGE's industry has an average PEG of 1.41 right now. Over the past 52 weeks, ATGE's PEG has been as high as 1.33 and as low as 0.61, with a median of 1.05.
Finally, we should also recognize that ATGE has a P/CF ratio of 9.61. 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 35.72. Over the past 52 weeks, ATGE's P/CF has been as high as 19.82 and as low as 6.49, with a median of 10.94.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Adtalem Global Education is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ATGE feels like a great value stock at the moment.
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