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Should Value Investors Buy Werner Enterprises (WERN) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Werner Enterprises (WERN - Free Report) is a stock many investors are watching right now. WERN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 15.61, which compares to its industry's average of 16.99. Over the past 52 weeks, WERN's Forward P/E has been as high as 31.51 and as low as 15.23, with a median of 21.94.

We should also highlight that WERN has a P/B ratio of 2.22. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. WERN's current P/B looks attractive when compared to its industry's average P/B of 2.69. Over the past 12 months, WERN's P/B has been as high as 2.73 and as low as 2.03, with a median of 2.34.

Finally, our model also underscores that WERN has a P/CF ratio of 6.02. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.83. WERN's P/CF has been as high as 9.50 and as low as 5.71, with a median of 6.78, all within the past year.

These are just a handful of the figures considered in Werner Enterprises'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 WERN is an impressive value stock right now.


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