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Are Investors Undervaluing Atlas Air Worldwide Holdings (AAWW) Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

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 Air Worldwide Holdings (AAWW). AAWW is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.06, while its industry has an average P/E of 10.94. Over the past year, AAWW's Forward P/E has been as high as 51.04 and as low as 3.71, with a median of 6.21.

Finally, our model also underscores that AAWW has a P/CF ratio of 3.97. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.23. Over the past year, AAWW's P/CF has been as high as 4.12 and as low as 2.41, with a median of 3.01.

Air Transport Services Group (ATSG) may be another strong Transportation - Air Freight and Cargo stock to add to your shortlist. ATSG is a # 2 (Buy) stock with a Value grade of A.

Furthermore, Air Transport Services Group holds a P/B ratio of 1.26 and its industry's price-to-book ratio is 5.50. ATSG's P/B has been as high as 1.92, as low as 1.24, with a median of 1.63 over the past 12 months.

Value investors will likely look at more than just these metrics, but the above data helps show that Atlas Air Worldwide Holdings and Air Transport Services Group are likely undervalued currently. And when considering the strength of its earnings outlook, AAWW and ATSG sticks out as one of the market's strongest value stocks.


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