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Is Atento (ATTO) a Great Value Stock Right Now?

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Zacks Equity Research
·3 min read
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 stock to keep an eye on is Atento (ATTO). ATTO is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 13.15, which compares to its industry's average of 22.83. Over the past 52 weeks, ATTO's Forward P/E has been as high as 1,080.14 and as low as -29,111.37, with a median of 12.49.

ATTO is also sporting a PEG ratio of 1.32. 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. ATTO's industry currently sports an average PEG of 2.13. Over the last 12 months, ATTO's PEG has been as high as 108.01 and as low as -2,911.14, with a median of 1.25.

We should also highlight that ATTO has a P/B ratio of 2.37. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 7.06. Over the past 12 months, ATTO's P/B has been as high as 2.47 and as low as 0.36, with a median of 1.23.

Finally, we should also recognize that ATTO has a P/CF ratio of 3.04. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.12. Within the past 12 months, ATTO's P/CF has been as high as 10.75 and as low as 0.61, with a median of 2.57.

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

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