Are Investors Undervaluing Atlanticus (ATLC) Right Now?
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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One company to watch right now is Atlanticus (ATLC). ATLC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 5.96, which compares to its industry's average of 12.86. Over the last 12 months, ATLC's Forward P/E has been as high as 9.33 and as low as 4.83, with a median of 6.18.
Investors should also recognize that ATLC has a P/B ratio of 1.30. 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 attractive against its industry's average P/B of 2.18. Over the past year, ATLC's P/B has been as high as 1.82 and as low as 0.97, with a median of 1.31.
Finally, we should also recognize that ATLC has a P/CF ratio of 4.40. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ATLC's P/CF compares to its industry's average P/CF of 14.60. Over the past 52 weeks, ATLC's P/CF has been as high as 6.74 and as low as 2.72, with a median of 4.56.
Value investors will likely look at more than just these metrics, but the above data helps show that Atlanticus is likely undervalued currently. And when considering the strength of its earnings outlook, ATLC sticks out at as one of the market's strongest value stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Atlanticus Holdings Corporation (ATLC) : Free Stock Analysis Report
