Are These Finance Stocks a Great Value Stocks 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Atlas (ATCO). ATCO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.46, while its industry has an average P/E of 12.14. Over the last 12 months, ATCO's Forward P/E has been as high as 12.69 and as low as 7.18, with a median of 10.06.
ATCO is also sporting a PEG ratio of 0.27. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ATCO's PEG compares to its industry's average PEG of 0.70. ATCO's PEG has been as high as 0.92 and as low as 0.26, with a median of 0.67, all within the past year.
We should also highlight that ATCO has a P/B ratio of 1. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.53. Within the past 52 weeks, ATCO's P/B has been as high as 1.12 and as low as 0.74, with a median of 0.95.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ATCO has a P/S ratio of 2.15. This compares to its industry's average P/S of 2.9.
Finally, our model also underscores that ATCO has a P/CF ratio of 6.94. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ATCO's P/CF compares to its industry's average P/CF of 12.90. Within the past 12 months, ATCO's P/CF has been as high as 7.76 and as low as 4.76, with a median of 5.97.
Another great Financial - Investment Management stock you could consider is Silvercrest Asset Management Group (SAMG), which is a # 2 (Buy) stock with a Value Score of A.
Additionally, Silvercrest Asset Management Group has a P/B ratio of 2.13 while its industry's price-to-book ratio sits at 2.53. For SAMG, this valuation metric has been as high as 2.38, as low as 1.85, with a median of 2.11 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Atlas and Silvercrest Asset Management Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ATCO and SAMG feels like a great value stock at the moment.
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Atlas Corp. (ATCO) : Free Stock Analysis Report
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