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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
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 stock to keep an eye on is CAI International . CAI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 6.43, while its industry has an average P/E of 12.18. CAI's Forward P/E has been as high as 11.22 and as low as 4.95, with a median of 6.01, all within the past year.
Investors should also note that CAI holds a PEG ratio of 0.80. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CAI's PEG compares to its industry's average PEG of 1.19. Within the past year, CAI's PEG has been as high as 1.40 and as low as 0.62, with a median of 0.75.
Another notable valuation metric for CAI is its P/B ratio of 0.84. 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 1.37. Within the past 52 weeks, CAI's P/B has been as high as 1.43 and as low as 0.67, with a median of 0.82.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CAI has a P/S ratio of 1.18. This compares to its industry's average P/S of 1.19.
Finally, we should also recognize that CAI has a P/CF ratio of 2.35. 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 stock's P/CF looks attractive against its industry's average P/CF of 4.62. CAI's P/CF has been as high as 4.77 and as low as 1.85, with a median of 2.41, all within the past year.
These are just a handful of the figures considered in CAI International'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 CAI is an impressive value stock right now.
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Are Investors Undervaluing CAI International (CAI) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
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 stock to keep an eye on is CAI International . CAI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 6.43, while its industry has an average P/E of 12.18. CAI's Forward P/E has been as high as 11.22 and as low as 4.95, with a median of 6.01, all within the past year.
Investors should also note that CAI holds a PEG ratio of 0.80. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CAI's PEG compares to its industry's average PEG of 1.19. Within the past year, CAI's PEG has been as high as 1.40 and as low as 0.62, with a median of 0.75.
Another notable valuation metric for CAI is its P/B ratio of 0.84. 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 1.37. Within the past 52 weeks, CAI's P/B has been as high as 1.43 and as low as 0.67, with a median of 0.82.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CAI has a P/S ratio of 1.18. This compares to its industry's average P/S of 1.19.
Finally, we should also recognize that CAI has a P/CF ratio of 2.35. 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 stock's P/CF looks attractive against its industry's average P/CF of 4.62. CAI's P/CF has been as high as 4.77 and as low as 1.85, with a median of 2.41, all within the past year.
These are just a handful of the figures considered in CAI International'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 CAI is an impressive value stock right now.