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Is Deutsche Lufthansa (DLAKY) Stock Undervalued Right Now?

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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.

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.

One company value investors might notice is Deutsche Lufthansa (DLAKY - Free Report) . DLAKY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors should also note that DLAKY holds a PEG ratio of 1. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DLAKY's PEG compares to its industry's average PEG of 1.05. Over the last 12 months, DLAKY's PEG has been as high as 2.72 and as low as 0.16, with a median of 1.04.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DLAKY has a P/S ratio of 0.21. This compares to its industry's average P/S of 0.38.

International Consolidated Airlines Group (ICAGY - Free Report) may be another strong Transportation - Airline stock to add to your shortlist. ICAGY is a # 2 (Buy) stock with a Value grade of A.

Shares of International Consolidated Airlines Group currently holds a Forward P/E ratio of 4.81, and its PEG ratio is 0.78. In comparison, its industry sports average P/E and PEG ratios of 17.48 and 1.05.

ICAGY's price-to-earnings ratio has been as high as 5.13 and as low as 3.80, with a median of 4.42, while its PEG ratio has been as high as 1.07 and as low as 0.07, with a median of 0.83, all within the past year.

Furthermore, International Consolidated Airlines Group holds a P/B ratio of 1.03 and its industry's price-to-book ratio is 4.78. ICAGY's P/B has been as high as 1.23, as low as 0.78, with a median of 1.01 over the past 12 months.

These are just a handful of the figures considered in Deutsche Lufthansa and International Consolidated Airlines Group'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 DLAKY and ICAGY is an impressive value stock right now.


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