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Are These Retail-Wholesale Stocks a Great Value Stocks Right Now?
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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company value investors might notice is Lithia Motors (LAD - Free Report) . LAD is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We should also highlight that LAD has a P/B ratio of 2.09. The P/B ratio pits a stock's market value against 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 2.39. Over the past year, LAD's P/B has been as high as 4.12 and as low as 1.82, with a median of 2.45.
Finally, our model also underscores that LAD has a P/CF ratio of 7.92. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 9.99. LAD's P/CF has been as high as 18.69 and as low as 6.91, with a median of 10.16, all within the past year.
Investors could also keep in mind Penske Automotive Group (PAG - Free Report) , an Automotive - Retail and Whole Sales stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Penske Automotive Group is currently trading with a Forward P/E ratio of 7.32 while its PEG ratio sits at 0.35. Both of the company's metrics compare favorably to its industry's average P/E of 6.26 and average PEG ratio of 0.32.
PAG's price-to-earnings ratio has been as high as 11.62 and as low as 7.05, with a median of 8.60, while its PEG ratio has been as high as 2.09 and as low as 0.34, with a median of 0.86, all within the past year.
Penske Automotive Group also has a P/B ratio of 1.91 compared to its industry's price-to-book ratio of 2.39. Over the past year, its P/B ratio has been as high as 2.31, as low as 1.54, with a median of 1.97.
These are just a handful of the figures considered in Lithia Motors and Penske Automotive Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that LAD and PAG is an impressive value stock right now.
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Are These Retail-Wholesale Stocks a Great Value Stocks 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company value investors might notice is Lithia Motors (LAD - Free Report) . LAD is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We should also highlight that LAD has a P/B ratio of 2.09. The P/B ratio pits a stock's market value against 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 2.39. Over the past year, LAD's P/B has been as high as 4.12 and as low as 1.82, with a median of 2.45.
Finally, our model also underscores that LAD has a P/CF ratio of 7.92. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 9.99. LAD's P/CF has been as high as 18.69 and as low as 6.91, with a median of 10.16, all within the past year.
Investors could also keep in mind Penske Automotive Group (PAG - Free Report) , an Automotive - Retail and Whole Sales stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Penske Automotive Group is currently trading with a Forward P/E ratio of 7.32 while its PEG ratio sits at 0.35. Both of the company's metrics compare favorably to its industry's average P/E of 6.26 and average PEG ratio of 0.32.
PAG's price-to-earnings ratio has been as high as 11.62 and as low as 7.05, with a median of 8.60, while its PEG ratio has been as high as 2.09 and as low as 0.34, with a median of 0.86, all within the past year.
Penske Automotive Group also has a P/B ratio of 1.91 compared to its industry's price-to-book ratio of 2.39. Over the past year, its P/B ratio has been as high as 2.31, as low as 1.54, with a median of 1.97.
These are just a handful of the figures considered in Lithia Motors and Penske Automotive Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that LAD and PAG is an impressive value stock right now.