Should Value Investors Buy Easyjet PLC (EJTTF) Stock?

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

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.

easyjet PLC (EJTTF) is a stock many investors are watching right now. EJTTF is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.46 right now. For comparison, its industry sports an average P/E of 9.87. EJTTF's Forward P/E has been as high as 16.10 and as low as 9.24, with a median of 11.81, all within the past year.

Another notable valuation metric for EJTTF is its P/B ratio of 1.50. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. EJTTF's current P/B looks attractive when compared to its industry's average P/B of 2.63. Over the past year, EJTTF's P/B has been as high as 2.07 and as low as 1.20, with a median of 1.50.

Value investors will likely look at more than just these metrics, but the above data helps show that easyjet PLC is likely undervalued currently. And when considering the strength of its earnings outlook, EJTTF sticks out at as one of the market's strongest value stocks.