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Is Air Transport Services (ATSG) 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 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 value investors might notice is Air Transport Services (ATSG). ATSG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 15.69. This compares to its industry's average Forward P/E of 18.53. Over the last 12 months, ATSG's Forward P/E has been as high as 18.22 and as low as 8.64, with a median of 14.99.

Finally, investors should note that ATSG has a P/CF ratio of 5.45. 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 stock's P/CF looks attractive against its industry's average P/CF of 16.20. ATSG's P/CF has been as high as 6.30 and as low as 2.33, with a median of 3.65, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Air Transport Services is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ATSG feels like a great value stock at the moment.


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