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 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 Allegiant (ALGT). ALGT is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value.
Investors will also notice that ALGT has a PEG ratio of 0.27. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ALGT's industry has an average PEG of 0.41 right now. Over the last 12 months, ALGT's PEG has been as high as 5.12 and as low as 0.10, with a median of 0.29.
We should also highlight that ALGT has a P/B ratio of 1.06. 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. ALGT's current P/B looks attractive when compared to its industry's average P/B of 2.58. Over the past 12 months, ALGT's P/B has been as high as 1.77 and as low as 0.59, with a median of 0.95.
Value investors will likely look at more than just these metrics, but the above data helps show that Allegiant is likely undervalued currently. And when considering the strength of its earnings outlook, ALGT sticks out as one of the market's strongest value stocks.
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Allegiant Travel Company (ALGT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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