Is Deutsche Lufthansa (DLAKY) Stock Undervalued Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.Deutsche Lufthansa (DLAKY) is a stock many investors are watching right now. DLAKY is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 6.41, which compares to its industry's average of 9.92. DLAKY's Forward P/E has been as high as 7.66 and as low as 4.63, with a median of 6.10, all within the past year.Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DLAKY has a P/S ratio of 0.27. This compares to its industry's average P/S of 0.68.If you're looking for another solid Transportation - Airline value stock, take a look at International Consolidated Airlines Group (ICAGY). ICAGY is a Zacks Rank of #1 (Strong Buy) stock with a Value score of A.Shares of International Consolidated Airlines Group currently hold a Forward P/E ratio of 6.61, and its PEG ratio is 0.78. In comparison, its industry sports average P/E and PEG ratios of 9.92 and 0.46.Over the past year, ICAGY's P/E has been as high as 7.44, as low as 4.41, with a median of 6.38; its PEG ratio has been as high as 1.07, as low as 0.56, with a median of 0.77 during the same time period.International Consolidated Airlines Group also has a P/B ratio of 3.55 compared to its industry's price-to-book ratio of 3.18. Over the past year, its P/B ratio has been as high as 3.69, as low as 1.03, with a median of 3.16.Value investors will likely look at more than just these metrics, but the above data helps show that Deutsche Lufthansa and International Consolidated Airlines Group are likely undervalued currently. And when considering the strength of its earnings outlook, DLAKY and ICAGY sticks out as one of the market's strongest value stocks.Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Deutsche Lufthansa AG (DLAKY): Free Stock Analysis Report International Consolidated Airlines Group SA (ICAGY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks