Is Air Transport Services Group (ATSG) 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.
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 value investors might notice is Air Transport Services Group (ATSG). ATSG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11.34. This compares to its industry's average Forward P/E of 15.75. Over the past year, ATSG's Forward P/E has been as high as 13.14 and as low as 7.34, with a median of 11.03.
Finally, investors should note that ATSG has a P/CF ratio of 3.30. 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 10.15. Over the past year, ATSG's P/CF has been as high as 4.70 and as low as 2.30, with a median of 3.48.
Another great Transportation - Air Freight and Cargo stock you could consider is FedEx (FDX), which is a # 2 (Buy) stock with a Value Score of A.
Shares of FedEx currently holds a Forward P/E ratio of 14.31, and its PEG ratio is 1.19. In comparison, its industry sports average P/E and PEG ratios of 15.75 and 1.48.
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Air Transport Services Group, Inc (ATSG) : Free Stock Analysis Report
FedEx Corporation (FDX) : Free Stock Analysis Report
