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Is Triton International (TRTN) Stock Undervalued Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Triton International (TRTN - Free Report) . TRTN is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 7.66. This compares to its industry's average Forward P/E of 13.48. TRTN's Forward P/E has been as high as 8.80 and as low as 4.63, with a median of 7.27, all within the past year.

TRTN is also sporting a PEG ratio of 0.77. 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 PEG compares to its industry's average PEG of 0.82. Within the past year, TRTN's PEG has been as high as 0.88 and as low as 0.46, with a median of 0.73.

Finally, we should also recognize that TRTN has a P/CF ratio of 2.47. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 4.93. Over the past year, TRTN's P/CF has been as high as 3.11 and as low as 1.66, with a median of 2.58.

These are only a few of the key metrics included in Triton International'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, TRTN looks like an impressive value stock at the moment.


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