Are Investors Undervaluing ADTALEM GBL EDU (ATGE) 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.

One company to watch right now is ADTALEM GBL EDU (ATGE). ATGE is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.

We should also highlight that ATGE has a P/B ratio of 3.65. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.71. Over the past year, ATGE's P/B has been as high as 3.65 and as low as 1.93, with a median of 2.68.

Finally, we should also recognize that ATGE has a P/CF ratio of 16.13. 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. This stock's P/CF looks attractive against its industry's average P/CF of 30.76. Over the past 52 weeks, ATGE's P/CF has been as high as 16.13 and as low as 10.15, with a median of 12.90.

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

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This article originally published on Zacks Investment Research (zacks.com).

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