We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Is Air Canada (ACDVF) Stock Undervalued Right Now?
Read MoreHide Full Article
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 company to watch right now is Air Canada (ACDVF - Free Report) . ACDVF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 6.87, while its industry has an average P/E of 16.33. Over the last 12 months, ACDVF's Forward P/E has been as high as 8.94 and as low as 3.88, with a median of 4.49.
Another notable valuation metric for ACDVF is its P/B ratio of 2.39. 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 4.77. Within the past 52 weeks, ACDVF's P/B has been as high as 12.44 and as low as 1.88, with a median of 8.10.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ACDVF has a P/S ratio of 0.33. This compares to its industry's average P/S of 0.57.
If you're looking for another solid Transportation - Airline value stock, take a look at United Airlines (UAL - Free Report) . UAL is a # 2 (Buy) stock with a Value score of A.
United Airlines is trading at a forward earnings multiple of 8.18 at the moment, with a PEG ratio of 0.91. This compares to its industry's average P/E of 16.33 and average PEG ratio of 1.02.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Air Canada (ACDVF) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 company to watch right now is Air Canada (ACDVF - Free Report) . ACDVF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 6.87, while its industry has an average P/E of 16.33. Over the last 12 months, ACDVF's Forward P/E has been as high as 8.94 and as low as 3.88, with a median of 4.49.
Another notable valuation metric for ACDVF is its P/B ratio of 2.39. 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 4.77. Within the past 52 weeks, ACDVF's P/B has been as high as 12.44 and as low as 1.88, with a median of 8.10.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ACDVF has a P/S ratio of 0.33. This compares to its industry's average P/S of 0.57.
If you're looking for another solid Transportation - Airline value stock, take a look at United Airlines (UAL - Free Report) . UAL is a # 2 (Buy) stock with a Value score of A.
United Airlines is trading at a forward earnings multiple of 8.18 at the moment, with a PEG ratio of 0.91. This compares to its industry's average P/E of 16.33 and average PEG ratio of 1.02.