In This Article:
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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
International Consolidated Airlines Group (ICAGY) is a stock many investors are watching right now. ICAGY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 6.05, while its industry has an average P/E of 16.20. Over the last 12 months, ICAGY's Forward P/E has been as high as 6.97 and as low as 3.80, with a median of 4.45.
ICAGY is also sporting a PEG ratio of 0.62. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ICAGY's industry has an average PEG of 0.81 right now. ICAGY's PEG has been as high as 1.07 and as low as 0.07, with a median of 0.84, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ICAGY has a P/S ratio of 0.53. This compares to its industry's average P/S of 0.59.
These figures are just a handful of the metrics value investors tend to look at, but they help show that International Consolidated Airlines Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ICAGY feels like a great value stock at the moment.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
International Consolidated Airlines Group SA (ICAGY) : Free Stock Analysis Report