Yahoo Finance Are Investors Undervaluing Air Canada (ACDVF) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Air Canada (ACDVF). ACDVF is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 4.20, which compares to its industry's average of 9.45. Over the last 12 months, ACDVF's Forward P/E has been as high as 15.50 and as low as 3.88, with a median of 7.53.
Investors should also note that ACDVF holds a PEG ratio of 0.20. 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. ACDVF's PEG compares to its industry's average PEG of 0.41.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ACDVF has a P/S ratio of 0.31. This compares to its industry's average P/S of 0.48.
Finally, investors should note that ACDVF has a P/CF ratio of 1.69. 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. ACDVF's current P/CF looks attractive when compared to its industry's average P/CF of 6.32. Within the past 12 months, ACDVF's P/CF has been as high as 9.27 and as low as -107.82, with a median of 1.80.
These are just a handful of the figures considered in Air Canada'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 ACDVF is an impressive value stock right now.
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Air Canada (ACDVF) : Free Stock Analysis Report
