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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Textainer Group . TGH is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.68. This compares to its industry's average Forward P/E of 14.83. TGH's Forward P/E has been as high as 10.75 and as low as 6.38, with a median of 7.63, all within the past year.
Another valuation metric that we should highlight is TGH's P/B ratio of 1. 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 solid versus its industry's average P/B of 1.34. TGH's P/B has been as high as 1.17 and as low as 0.33, with a median of 0.72, over the past year.
Finally, we should also recognize that TGH has a P/CF ratio of 3.66. 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 9.99. Over the past 52 weeks, TGH's P/CF has been as high as 4.32 and as low as 1.25, with a median of 2.56.
These are only a few of the key metrics included in Textainer Group'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, TGH looks like an impressive value stock at the moment.
Image: Bigstock
Is Textainer Group (TGH) a Great Value Stock 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Textainer Group . TGH is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 6.68. This compares to its industry's average Forward P/E of 14.83. TGH's Forward P/E has been as high as 10.75 and as low as 6.38, with a median of 7.63, all within the past year.
Another valuation metric that we should highlight is TGH's P/B ratio of 1. 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 solid versus its industry's average P/B of 1.34. TGH's P/B has been as high as 1.17 and as low as 0.33, with a median of 0.72, over the past year.
Finally, we should also recognize that TGH has a P/CF ratio of 3.66. 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 9.99. Over the past 52 weeks, TGH's P/CF has been as high as 4.32 and as low as 1.25, with a median of 2.56.
These are only a few of the key metrics included in Textainer Group'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, TGH looks like an impressive value stock at the moment.