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Should Value Investors Buy Triton International (TRTN) 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Triton International . TRTN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 7.21 right now. For comparison, its industry sports an average P/E of 10.62. Over the past 52 weeks, TRTN's Forward P/E has been as high as 14.20 and as low as 6.19, with a median of 7.50.

Investors should also note that TRTN holds a PEG ratio of 0.72. 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. TRTN's industry has an average PEG of 1.04 right now. Within the past year, TRTN's PEG has been as high as 1.89 and as low as 0.62, with a median of 0.75.

We should also highlight that TRTN has a P/B ratio of 1.09. The P/B ratio is used to compare a stock's market value with 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 1.19. Within the past 52 weeks, TRTN's P/B has been as high as 1.53 and as low as 0.97, with a median of 1.15.

Finally, we should also recognize that TRTN has a P/CF ratio of 2.32. 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 3.81. Over the past year, TRTN's P/CF has been as high as 3.55 and as low as 2.07, with a median of 2.56.

Value investors will likely look at more than just these metrics, but the above data helps show that Triton International is likely undervalued currently. And when considering the strength of its earnings outlook, TRTN sticks out at as one of the market's strongest value stocks.

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