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Are Investors Undervaluing International Consolidated Airlines (ICAGY) Right Now?

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is International Consolidated Airlines (ICAGY). ICAGY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 5.22. This compares to its industry's average Forward P/E of 9.09. Over the past 52 weeks, ICAGY's Forward P/E has been as high as 8.20 and as low as 5.06, with a median of 6.70.

Finally, our model also underscores that ICAGY has a P/CF ratio of 3.22. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.57. Over the past year, ICAGY's P/CF has been as high as 3.66 and as low as 1.46, with a median of 1.96.

Value investors will likely look at more than just these metrics, but the above data helps show that International Consolidated Airlines is likely undervalued currently. And when considering the strength of its earnings outlook, ICAGY sticks out at as one of the market's strongest value stocks.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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