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.
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.
Atlanticus (ATLC) is a stock many investors are watching right now. ATLC is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.89. This compares to its industry's average Forward P/E of 16.49. ATLC's Forward P/E has been as high as 12.46 and as low as 6.34, with a median of 8.26, all within the past year.
Investors should also recognize that ATLC has a P/B ratio of 1.9. The P/B ratio is used to compare a stock's market value with 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 2.99. ATLC's P/B has been as high as 2.08 and as low as 1.11, with a median of 1.54, over the past year.
These are just a handful of the figures considered in Atlanticus's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ATLC is an impressive value stock right now.
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Atlanticus Holdings Corporation (ATLC): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).