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Are Investors Undervaluing Cars.com (CARS) 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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company to watch right now is Cars.com (CARS - Free Report) . CARS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We also note that CARS holds a PEG ratio of 2.09. 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. CARS's industry currently sports an average PEG of 2.31. Over the past 52 weeks, CARS's PEG has been as high as 2.09 and as low as 0.78, with a median of 1.61.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CARS has a P/S ratio of 1.02. This compares to its industry's average P/S of 2.45.
These are just a handful of the figures considered in Cars.com'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 CARS is an impressive value stock right now.
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Are Investors Undervaluing Cars.com (CARS) Right Now?
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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company to watch right now is Cars.com (CARS - Free Report) . CARS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We also note that CARS holds a PEG ratio of 2.09. 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. CARS's industry currently sports an average PEG of 2.31. Over the past 52 weeks, CARS's PEG has been as high as 2.09 and as low as 0.78, with a median of 1.61.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CARS has a P/S ratio of 1.02. This compares to its industry's average P/S of 2.45.
These are just a handful of the figures considered in Cars.com'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 CARS is an impressive value stock right now.