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Should Value Investors Buy Schneider National (SNDR) Stock?

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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Schneider National (SNDR - Free Report) is a stock many investors are watching right now. SNDR 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 12.10, which compares to its industry's average of 21.03. Over the past year, SNDR's Forward P/E has been as high as 16.89 and as low as 10.99, with a median of 14.09.

Investors will also notice that SNDR has a PEG ratio of 0.67. 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. SNDR's PEG compares to its industry's average PEG of 1.25. SNDR's PEG has been as high as 2.58 and as low as 0.61, with a median of 1.06, all within the past year.

We should also highlight that SNDR has a P/B ratio of 2. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 4.42. Within the past 52 weeks, SNDR's P/B has been as high as 2.23 and as low as 1.54, with a median of 1.85.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SNDR has a P/S ratio of 0.9. This compares to its industry's average P/S of 1.3.

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


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