Is Atento (ATTO) a Great Value Stock Right Now?

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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Atento (ATTO) is a stock many investors are watching right now. ATTO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 16.69, which compares to its industry's average of 20.95. Over the past 52 weeks, ATTO's Forward P/E has been as high as 1,080.14 and as low as -29,111.37, with a median of 8.38.

Investors should also note that ATTO holds a PEG ratio of 1.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ATTO's PEG compares to its industry's average PEG of 1.96. Within the past year, ATTO's PEG has been as high as 108.01 and as low as -2,911.14, with a median of 0.84.

Finally, our model also underscores that ATTO has a P/CF ratio of 8.55. 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. This stock's P/CF looks attractive against its industry's average P/CF of 10.12. Over the past 52 weeks, ATTO's P/CF has been as high as 10.75 and as low as 0.61, with a median of 2.22.

These are only a few of the key metrics included in Atento'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, ATTO looks like an impressive value stock at the moment.

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