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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company value investors might notice is P.A.M. Transportation (PTSI - Free Report) . PTSI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.06 right now. For comparison, its industry sports an average P/E of 24.18. Over the past year, PTSI's Forward P/E has been as high as 17.42 and as low as 4.70, with a median of 11.92.
Another notable valuation metric for PTSI is its P/B ratio of 2.01. 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. PTSI's current P/B looks attractive when compared to its industry's average P/B of 3.05. Within the past 52 weeks, PTSI's P/B has been as high as 2.49 and as low as 0.95, with a median of 1.63.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PTSI has a P/S ratio of 0.58. This compares to its industry's average P/S of 1.23.
Finally, we should also recognize that PTSI has a P/CF ratio of 5.97. 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. This stock's P/CF looks attractive against its industry's average P/CF of 14.67. Over the past year, PTSI's P/CF has been as high as 6.21 and as low as 2.01, with a median of 4.13.
These are only a few of the key metrics included in P.A.M. Transportation's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PTSI looks like an impressive value stock at the moment.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company value investors might notice is P.A.M. Transportation (PTSI - Free Report) . PTSI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.06 right now. For comparison, its industry sports an average P/E of 24.18. Over the past year, PTSI's Forward P/E has been as high as 17.42 and as low as 4.70, with a median of 11.92.
Another notable valuation metric for PTSI is its P/B ratio of 2.01. 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. PTSI's current P/B looks attractive when compared to its industry's average P/B of 3.05. Within the past 52 weeks, PTSI's P/B has been as high as 2.49 and as low as 0.95, with a median of 1.63.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PTSI has a P/S ratio of 0.58. This compares to its industry's average P/S of 1.23.
Finally, we should also recognize that PTSI has a P/CF ratio of 5.97. 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. This stock's P/CF looks attractive against its industry's average P/CF of 14.67. Over the past year, PTSI's P/CF has been as high as 6.21 and as low as 2.01, with a median of 4.13.
These are only a few of the key metrics included in P.A.M. Transportation's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PTSI looks like an impressive value stock at the moment.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on PTSI - FREE