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Should Value Investors Buy P.A.M. Transportation (PTSI) Stock?

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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 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 a Value grade of A. The stock is trading with P/E ratio of 11.03 right now. For comparison, its industry sports an average P/E of 29.11. Over the past 52 weeks, PTSI's Forward P/E has been as high as 17.42 and as low as 4.70, with a median of 11.74.

Another valuation metric that we should highlight is PTSI's P/B ratio of 2.52. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.05. Over the past year, PTSI's P/B has been as high as 2.60 and as low as 0.95, with a median of 1.63.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PTSI has a P/S ratio of 0.68. This compares to its industry's average P/S of 1.48.

Finally, we should also recognize that PTSI has a P/CF ratio of 4.67. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 14.67. Over the past 52 weeks, PTSI's P/CF has been as high as 6.21 and as low as 2.01, with a median of 4.29.

These are just a handful of the figures considered in P.A.M. Transportation'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 PTSI is an impressive value stock right now.

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