Are Investors Undervaluing These Finance Stocks Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Atlas (ATCO). ATCO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.56, while its industry has an average P/E of 12.95. 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 9.92.
We also note that ATCO holds a PEG ratio of 0.31. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. ATCO's PEG compares to its industry's average PEG of 0.79. Over the past 52 weeks, ATCO's PEG has been as high as 0.92 and as low as 0.26, with a median of 0.66.
Another notable valuation metric for ATCO is its P/B ratio of 1.15. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. ATCO's current P/B looks attractive when compared to its industry's average P/B of 2.64. Over the past 12 months, ATCO's P/B has been as high as 1.15 and as low as 0.84, with a median of 0.97.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 2.49. This compares to its industry's average P/S of 2.88.
Finally, investors will want to recognize that ATCO has a P/CF ratio of 8.02. 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. ATCO's current P/CF looks attractive when compared to its industry's average P/CF of 13.41. Within the past 12 months, ATCO's P/CF has been as high as 8.02 and as low as 5.01, with a median of 6.06.
Silvercrest Asset Management Group (SAMG) may be another strong Financial - Investment Management stock to add to your shortlist. SAMG is a # 2 (Buy) stock with a Value grade of A.
Silvercrest Asset Management Group sports a P/B ratio of 2.32 as well; this compares to its industry's price-to-book ratio of 2.64. In the past 52 weeks, SAMG's P/B has been as high as 2.38, as low as 1.85, with a median of 2.12.
These are just a handful of the figures considered in Atlas and Silvercrest Asset Management Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ATCO and SAMG is an impressive value stock right now.
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Atlas Corp. (ATCO) : Free Stock Analysis Report
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