Is Adtalem Global Education (ATGE) a Great Value Stock 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, 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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Adtalem Global Education (ATGE). ATGE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 15.04, which compares to its industry's average of 29.55. Over the last 12 months, ATGE's Forward P/E has been as high as 19.76 and as low as 14.30, with a median of 15.84.
Investors will also notice that ATGE has a PEG ratio of 1.14. 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 1.76. Over the past 52 weeks, ATGE's PEG has been as high as 1.74 and as low as 1.11, with a median of 1.29.
Finally, our model also underscores that ATGE has a P/CF ratio of 17.54. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 36.81. Within the past 12 months, ATGE's P/CF has been as high as 57.89 and as low as 17.42, with a median of 36.08.
These are only a few of the key metrics included in Adtalem Global Education's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, ATGE looks like an impressive value stock at the moment.
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