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Should Value Investors Buy Atlas Air Worldwide (AAWW) Stock?

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 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 stock to keep an eye on is Atlas Air Worldwide (AAWW). AAWW is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 6.76 right now. For comparison, its industry sports an average P/E of 12.49. Over the last 12 months, AAWW's Forward P/E has been as high as 12.91 and as low as 6.68, with a median of 10.59.

Finally, we should also recognize that AAWW has a P/CF ratio of 3.14. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. AAWW's P/CF compares to its industry's average P/CF of 11.03. Over the past 52 weeks, AAWW's P/CF has been as high as 7 and as low as 3.10, with a median of 4.02.

These are just a handful of the figures considered in Atlas Air Worldwide'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 AAWW is an impressive value stock right now.

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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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