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Is Atlas Air Worldwide (AAWW) Stock Undervalued Right Now?

Zacks Equity Research
·2 min read

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Atlas Air Worldwide (AAWW) is a stock many investors are watching right now. AAWW is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 5.32 right now. For comparison, its industry sports an average P/E of 14.03. Over the past 52 weeks, AAWW's Forward P/E has been as high as 7.75 and as low as 2.83, with a median of 5.32.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AAWW has a P/S ratio of 0.38. This compares to its industry's average P/S of 0.44.

Value investors will likely look at more than just these metrics, but the above data helps show that Atlas Air Worldwide is likely undervalued currently. And when considering the strength of its earnings outlook, AAWW sticks out at as one of the market's strongest value stocks.


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Zacks Investment Research