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 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.
Adtalem Global Education (ATGE) is a stock many investors are watching right now. ATGE is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.75 right now. For comparison, its industry sports an average P/E of 21.92. Over the past year, ATGE's Forward P/E has been as high as 10.56 and as low as 6.99, with a median of 9.07.
ATGE is also sporting a PEG ratio of 0.65. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ATGE's PEG compares to its industry's average PEG of 1.26. Within the past year, ATGE's PEG has been as high as 0.70 and as low as 0.47, with a median of 0.60.
Investors should also recognize that ATGE has a P/B ratio of 1.23. The P/B ratio pits a stock's market value against 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 2.25. Within the past 52 weeks, ATGE's P/B has been as high as 1.33 and as low as 0.95, with a median of 1.14.
Value investors will likely look at more than just these metrics, but the above data helps show that Adtalem Global Education is likely undervalued currently. And when considering the strength of its earnings outlook, ATGE sticks out at as one of the market's strongest value stocks.
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