Consider Buying Air Canada (ACDVF) Stock If You're a Value Investor

You can also Read about Finance and Business of Canada and Australia

To identify successful companies, we at Zacks use our tried-and-true rating methodology, which gives weight to earnings projections and changes to those predictions. We keep an eye on emerging trends in value, growth, and momentum to uncover promising businesses for our readers, but we also know that investors have their own methods.

When we consider the evolution of these trends, value investing stands out as one of the most beloved. The basic idea behind this approach is to find businesses that the market as a whole is undervaluing. In order to identify firms that they think are currently cheap, value investors rely on traditional measures and fundamental research.

Our Style Scores system complements the Zacks Rank for investors seeking equities with certain characteristics. Obviously, the "value" category is where value investors will focus their attention. Companies that have received high Zacks Ranks and value grades of "A" are considered to be among the finest value stocks currently available.

A lot of people are keeping an eye on Air Canada's (ACDVF) shares right now. At the moment, ACDVF has a value grade of A and a Zacks rank of #1 (strong buy). This stock's forward price-to-earnings ratio is 4.68. The average forward P/E for its industry is 9.78; therefore, this is in comparison. Within the last twelve months, ACDVF's forward P/E has ranged from a low of -5.39 to a high of 20.37, with a median of 12.40.

The PEG ratio of ACDVF is 0.20, which is something that investors should be aware of. Comparable to the well-known P/E ratio, the PEG ratio considers not only the current stock price but also the rate of predicted profit growth. At present, the average PEG for ACDVF's industry is 0.35. The median PEG for ACDVF during the last 52 weeks has been 0.20, with values ranging from 0.21 to 0.20.

The price-to-sales ratio is often used by value investors as well. Divide the company's revenue by the stock price to get this measure. Sales are often a more accurate measure of success than revenue, which is why this statistic is used. The P/S ratio for ACDVF is 0.29. As a comparison, the average P/S for its industry is 0.36.

One other thing to keep in mind is that the P/CF ratio for ACDVF is 1.63. This metric takes a company's operational cash flow into account and is often used to identify undervalued firms with a strong cash outlook. Considering that the average P/CF for its industry is 5.40, ACDVF's current P/CF appears appealing. The P/CF for ACDVF has ranged from -133.81 to 9.27 in the last 12 months, with a median of 1.78.

Consider SkyWest (SKYW) if you are seeking an additional reliable transportation-airline value investment. On the value scale, SKYW is an A, making it the #2 (buy) stock.

At the moment, SkyWest's PEG ratio is 0.89, and its forward P/E ratio is 9.96. The average P/E and PEG ratios for its industry are 9.78 and 0.35, respectively.

The PEG ratio has ranged from 0.79 to 1.84 and 11,210.77 for SKYW during the last year, with a median of 14.90. The price-to-earnings ratio has ranged from -3,534.23 to 14,90.

In comparison to its industry's average of 2.65, SkyWest's P/B ratio of 0.88 is rather low. The P/B ratio has ranged from 0.31 to 0.91 during the last year, with 0.60 being the middle value.

While these are only a few of the important variables that contribute to Air Canada and SkyWest's excellent value grade, they do help to demonstrate that the stocks are probably undervalued at the moment. Currently, ACDVF and SKYW seem to be outstanding value stocks when considering the quality of their earnings forecasts.

Does Zacks Investment Research provide you with up-to-date recommendations? For the next 30 days, you have the option to download the 7 best stocks.