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Should Value Investors Buy Schneider National (SNDR) 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.

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.

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) and an A for Value. The stock has a Forward P/E ratio of 14.60. This compares to its industry's average Forward P/E of 21.10. Over the past year, SNDR's Forward P/E has been as high as 30.88 and as low as 14.50, with a median of 18.65.

Another notable valuation metric for SNDR is its P/B ratio of 2.21. 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. This stock's P/B looks solid versus its industry's average P/B of 4.47. Over the past year, SNDR's P/B has been as high as 3.17 and as low as 2.19, with a median of 2.54.

Finally, investors will want to recognize that SNDR has a P/CF ratio of 6.12. 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 18.90. Over the past year, SNDR's P/CF has been as high as 11.94 and as low as 6.08, with a median of 7.17.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Schneider National is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SNDR feels like a great value stock at the moment.


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