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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
AutoNation (AN - Free Report) is a stock many investors are watching right now. AN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.68 right now. For comparison, its industry sports an average P/E of 10.96. Over the past year, AN's Forward P/E has been as high as 14.25 and as low as 4.56, with a median of 10.21.
AN is also sporting a PEG ratio of 1.08. 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. AN's industry currently sports an average PEG of 1.85. Over the last 12 months, AN's PEG has been as high as 4.97 and as low as 1.08, with a median of 3.12.
Investors should also recognize that AN has a P/B ratio of 1.43. 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. This stock's P/B looks attractive against its industry's average P/B of 1.50. Within the past 52 weeks, AN's P/B has been as high as 1.63 and as low as 0.64, with a median of 1.34.
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. AN has a P/S ratio of 0.22. This compares to its industry's average P/S of 0.26.
Finally, our model also underscores that AN has a P/CF ratio of 5.55. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 11.41. Over the past year, AN's P/CF has been as high as 8.42 and as low as 3.22, with a median of 6.14.
Value investors will likely look at more than just these metrics, but the above data helps show that AutoNation is likely undervalued currently. And when considering the strength of its earnings outlook, AN sticks out at as one of the market's strongest value stocks.
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Is AutoNation (AN) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
AutoNation (AN - Free Report) is a stock many investors are watching right now. AN is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 8.68 right now. For comparison, its industry sports an average P/E of 10.96. Over the past year, AN's Forward P/E has been as high as 14.25 and as low as 4.56, with a median of 10.21.
AN is also sporting a PEG ratio of 1.08. 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. AN's industry currently sports an average PEG of 1.85. Over the last 12 months, AN's PEG has been as high as 4.97 and as low as 1.08, with a median of 3.12.
Investors should also recognize that AN has a P/B ratio of 1.43. 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. This stock's P/B looks attractive against its industry's average P/B of 1.50. Within the past 52 weeks, AN's P/B has been as high as 1.63 and as low as 0.64, with a median of 1.34.
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. AN has a P/S ratio of 0.22. This compares to its industry's average P/S of 0.26.
Finally, our model also underscores that AN has a P/CF ratio of 5.55. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 11.41. Over the past year, AN's P/CF has been as high as 8.42 and as low as 3.22, with a median of 6.14.
Value investors will likely look at more than just these metrics, but the above data helps show that AutoNation is likely undervalued currently. And when considering the strength of its earnings outlook, AN sticks out at as one of the market's strongest value stocks.