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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 to watch right now is Air Canada (ACDVF). ACDVF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 6.87, while its industry has an average P/E of 16.33. Over the last 12 months, ACDVF's Forward P/E has been as high as 8.94 and as low as 3.88, with a median of 4.49.
Another notable valuation metric for ACDVF is its P/B ratio of 2.39. 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 4.77. Within the past 52 weeks, ACDVF's P/B has been as high as 12.44 and as low as 1.88, with a median of 8.10.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 0.33. This compares to its industry's average P/S of 0.57.
If you're looking for another solid Transportation - Airline value stock, take a look at United Airlines (UAL). UAL is a # 2 (Buy) stock with a Value score of A.
United Airlines is trading at a forward earnings multiple of 8.18 at the moment, with a PEG ratio of 0.91. This compares to its industry's average P/E of 16.33 and average PEG ratio of 1.02.
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Air Canada (ACDVF) : Free Stock Analysis Report