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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 stock to keep an eye on is Corporacion America Airports (CAAP). CAAP is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.13, which compares to its industry's average of 9.15. Over the past 52 weeks, CAAP's Forward P/E has been as high as 20.22 and as low as 8.09, with a median of 11.98.
Another valuation metric that we should highlight is CAAP's P/B ratio of 1.87. 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 2.51. Over the past 12 months, CAAP's P/B has been as high as 2.31 and as low as 1.65, with a median of 2.07.
Another great Transportation - Airline stock you could consider is Sun Country Airlines (SNCY), which is a Zacks Rank of #2 (Buy) stock with a Value Score of A.
Sun Country Airlines is currently trading with a Forward P/E ratio of 7.15 while its PEG ratio sits at 0.19. Both of the company's metrics compare favorably to its industry's average P/E of 9.15 and average PEG ratio of 0.39.
SNCY's Forward P/E has been as high as 14.79 and as low as 4.54, with a median of 7.24. During the same time period, its PEG ratio has been as high as 0.66, as low as 0.11, with a median of 0.20.
Sun Country Airlines also has a P/B ratio of 1.10 compared to its industry's price-to-book ratio of 2.51. Over the past year, its P/B ratio has been as high as 1.69, as low as 0.72, with a median of 1.13.
Value investors will likely look at more than just these metrics, but the above data helps show that Corporacion America Airports and Sun Country Airlines are likely undervalued currently. And when considering the strength of its earnings outlook, CAAP and SNCY sticks out as one of the market's strongest value stocks.
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Corporacion America Airports S.A. (CAAP): Free Stock Analysis Report
Sun Country Airlines Holdings, Inc. (SNCY): Free Stock Analysis Report