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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
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 company value investors might notice is LATAM Airlines Group (LTM). LTM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.94. This compares to its industry's average Forward P/E of 16.50. Over the past 52 weeks, LTM's Forward P/E has been as high as 9.31 and as low as 6.73, with a median of 7.96.
Investors should also note that LTM holds a PEG ratio of 0.49. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. LTM's industry currently sports an average PEG of 0.80. Over the past 52 weeks, LTM's PEG has been as high as 0.64 and as low as 0.48, with a median of 0.55.
Value investors will likely look at more than just these metrics, but the above data helps show that LATAM Airlines Group is likely undervalued currently. And when considering the strength of its earnings outlook, LTM sticks out at as one of the market's strongest value stocks.
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LATAM Airlines Group S.A. (LTM) : Free Stock Analysis Report