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MARKETS LIVE BLOG:

STOCKS SLIDE AFTER META'S REALITY CHECK, WITH GDP ON DECK

Owner of Facebook and Instagram plans to spend up to US$10B on AI infrastructure investments

Is Legato Merger (ASTL) a Great Value Stock Right Now?

Zacks Equity Research
·2 min read

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, 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Legato Merger (ASTL). ASTL 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 2.97, which compares to its industry's average of 3.74. ASTL's Forward P/E has been as high as 4.33 and as low as 2.07, with a median of 3.45, all within the past year.

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Finally, our model also underscores that ASTL has a P/CF ratio of 2.64. 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. This stock's P/CF looks attractive against its industry's average P/CF of 3.69. ASTL's P/CF has been as high as 3.37 and as low as 2.26, with a median of 2.73, all within the past year.

Investors could also keep in mind ArcelorMittal (MT), an Steel - Producers stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Shares of ArcelorMittal currently holds a Forward P/E ratio of 2.28, and its PEG ratio is 2.12. In comparison, its industry sports average P/E and PEG ratios of 3.74 and 0.28.


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