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.
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is CAI International . CAI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 6.26, which compares to its industry's average of 11.88. Over the past 52 weeks, CAI's Forward P/E has been as high as 18.76 and as low as 3.84, with a median of 6.87.
We should also highlight that CAI has a P/B ratio of 0.91. 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 0.92. Over the past 12 months, CAI's P/B has been as high as 1.02 and as low as 0.32, with a median of 0.66.
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. CAI has a P/S ratio of 1.58. This compares to its industry's average P/S of 1.62.
Finally, we should also recognize that CAI has a P/CF ratio of 3.70. 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. CAI's current P/CF looks attractive when compared to its industry's average P/CF of 4.93. Within the past 12 months, CAI's P/CF has been as high as 4.14 and as low as 1.27, with a median of 3.14.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CAI International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CAI feels like a great value stock at the moment.
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Should Value Investors Buy CAI International (CAI) Stock?
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.
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is CAI International . CAI is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 6.26, which compares to its industry's average of 11.88. Over the past 52 weeks, CAI's Forward P/E has been as high as 18.76 and as low as 3.84, with a median of 6.87.
We should also highlight that CAI has a P/B ratio of 0.91. 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 0.92. Over the past 12 months, CAI's P/B has been as high as 1.02 and as low as 0.32, with a median of 0.66.
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. CAI has a P/S ratio of 1.58. This compares to its industry's average P/S of 1.62.
Finally, we should also recognize that CAI has a P/CF ratio of 3.70. 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. CAI's current P/CF looks attractive when compared to its industry's average P/CF of 4.93. Within the past 12 months, CAI's P/CF has been as high as 4.14 and as low as 1.27, with a median of 3.14.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CAI International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CAI feels like a great value stock at the moment.