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Are Investors Undervaluing Werner Enterprises (WERN) 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One stock to keep an eye on is Werner Enterprises (WERN - Free Report) . WERN is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 14.30, which compares to its industry's average of 16.38. Over the past 52 weeks, WERN's Forward P/E has been as high as 31.51 and as low as 14.28, with a median of 18.23.

Investors should also recognize that WERN has a P/B ratio of 2.08. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.62. Over the past year, WERN's P/B has been as high as 2.73 and as low as 2.03, with a median of 2.32.

Finally, our model also underscores that WERN has a P/CF ratio of 5.64. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. WERN's P/CF compares to its industry's average P/CF of 9.93. WERN's P/CF has been as high as 9.50 and as low as 5.63, with a median of 6.50, all within the past year.

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


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