Are Investors Undervaluing Atlanticus (ATLC) 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.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.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 to watch right now is Atlanticus (ATLC). ATLC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.14. This compares to its industry's average Forward P/E of 13.97. Over the last 12 months, ATLC's Forward P/E has been as high as 12.46 and as low as 4.40, with a median of 6.42.Another notable valuation metric for ATLC is its P/B ratio of 1.47. Investors use the P/B ratio to look at a stock's market value versus 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 2.53. Over the past 12 months, ATLC's P/B has been as high as 2.08 and as low as 0.84, with a median of 1.18.Finally, our model also underscores that ATLC has a P/CF ratio of 7.12. 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. ATLC's current P/CF looks attractive when compared to its industry's average P/CF of 15.20. Within the past 12 months, ATLC's P/CF has been as high as 9.86 and as low as 3.71, with a median of 5.40.Orix Corp Ads (IX) may be another strong Financial - Miscellaneous Services stock to add to your shortlist. IX is a # 2 (Buy) stock with a Value grade of A.Shares of Orix Corp Ads are currently trading at a forward earnings multiple of 8.93 and a PEG ratio of 0.96 compared to its industry's P/E and PEG ratios of 13.97 and 0.91, respectively.Over the last 12 months, IX's P/E has been as high as 12.39, as low as 8.41, with a median of 9.60, and its PEG ratio has been as high as 1.10, as low as 0.69, with a median of 0.95.Additionally, Orix Corp Ads has a P/B ratio of 0.88 while its industry's price-to-book ratio sits at 2.53. For IX, this valuation metric has been as high as 1.14, as low as 0.82, with a median of 0.97 over the past year.These figures are just a handful of the metrics value investors tend to look at, but they help show that Atlanticus and Orix Corp Ads are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ATLC and IX feels like a great value stock at the moment.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Atlanticus Holdings Corporation (ATLC): Free Stock Analysis Report Orix Corp Ads (IX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks