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Should Value Investors Buy These Retail-Wholesale Stocks?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One company value investors might notice is AutoNation (AN - Free Report) . AN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 5.77. This compares to its industry's average Forward P/E of 6.04. Over the last 12 months, AN's Forward P/E has been as high as 29.04 and as low as 5.61, with a median of 8.70.
Investors should also note that AN holds a PEG ratio of 0.25. 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. AN's PEG compares to its industry's average PEG of 0.34. AN's PEG has been as high as 1.23 and as low as 0.24, with a median of 0.44, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. AN has a P/S ratio of 0.27. This compares to its industry's average P/S of 0.41.
Finally, investors will want to recognize that AN has a P/CF ratio of 4.76. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.66. Within the past 12 months, AN's P/CF has been as high as 9.20 and as low as 4.35, with a median of 6.93.
If you're looking for another solid Automotive - Retail and Whole Sales value stock, take a look at Sonic Automotive (SAH - Free Report) . SAH is a # 2 (Buy) stock with a Value score of A.
Furthermore, Sonic Automotive holds a P/B ratio of 1.80 and its industry's price-to-book ratio is 2.17. SAH's P/B has been as high as 2.67, as low as 1.69, with a median of 2.16 over the past 12 months.
These are just a handful of the figures considered in AutoNation and Sonic Automotive'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 AN and SAH is an impressive value stock right now.
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Should Value Investors Buy These Retail-Wholesale Stocks?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
One company value investors might notice is AutoNation (AN - Free Report) . AN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 5.77. This compares to its industry's average Forward P/E of 6.04. Over the last 12 months, AN's Forward P/E has been as high as 29.04 and as low as 5.61, with a median of 8.70.
Investors should also note that AN holds a PEG ratio of 0.25. 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. AN's PEG compares to its industry's average PEG of 0.34. AN's PEG has been as high as 1.23 and as low as 0.24, with a median of 0.44, all within the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. AN has a P/S ratio of 0.27. This compares to its industry's average P/S of 0.41.
Finally, investors will want to recognize that AN has a P/CF ratio of 4.76. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.66. Within the past 12 months, AN's P/CF has been as high as 9.20 and as low as 4.35, with a median of 6.93.
If you're looking for another solid Automotive - Retail and Whole Sales value stock, take a look at Sonic Automotive (SAH - Free Report) . SAH is a # 2 (Buy) stock with a Value score of A.
Furthermore, Sonic Automotive holds a P/B ratio of 1.80 and its industry's price-to-book ratio is 2.17. SAH's P/B has been as high as 2.67, as low as 1.69, with a median of 2.16 over the past 12 months.
These are just a handful of the figures considered in AutoNation and Sonic Automotive'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 AN and SAH is an impressive value stock right now.