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Should Value Investors Buy Atlanticus (ATLC) Stock?

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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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 stock to keep an eye on is Atlanticus (ATLC - Free Report) . ATLC is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 10.05. This compares to its industry's average Forward P/E of 25.08. Over the past 52 weeks, ATLC's Forward P/E has been as high as 12.46 and as low as 5.53, with a median of 8.22.

Another notable valuation metric for ATLC is its P/B ratio of 1.95. 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 company's current P/B looks solid when compared to its industry's average P/B of 3.67. Within the past 52 weeks, ATLC's P/B has been as high as 2.08 and as low as 1.06, with a median of 1.54.

Finally, our model also underscores that ATLC has a P/CF ratio of 9.44. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. ATLC's P/CF compares to its industry's average P/CF of 19.93. Over the past year, ATLC's P/CF has been as high as 9.86 and as low as 4.80, with a median of 6.89.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Atlanticus is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ATLC feels like a great value stock at the moment.


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