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 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 LATAM Airlines Group (LTM). LTM is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.88, while its industry has an average P/E of 9.47. LTM's Forward P/E has been as high as 9.75 and as low as 6.73, with a median of 8.47, all within the past year.
Investors will also notice that LTM has a PEG ratio of 0.40. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. LTM's PEG compares to its industry's average PEG of 0.48. Over the past 52 weeks, LTM's PEG has been as high as 0.85 and as low as 0.37, with a median of 0.57.
These figures are just a handful of the metrics value investors tend to look at, but they help show that LATAM Airlines Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, LTM feels like a great value stock at the moment.
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LATAM Airlines Group S.A. (LTM): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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