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Are Investors Undervaluing CAI International (CAI) Right Now?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

CAI International is a stock many investors are watching right now. CAI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Investors should also recognize that CAI has a P/B ratio of 1.16. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.54. Over the past year, CAI's P/B has been as high as 1.44 and as low as 0.47, with a median of 0.93.

Finally, our model also underscores that CAI has a P/CF ratio of 3.93. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CAI's P/CF compares to its industry's average P/CF of 9.48. Within the past 12 months, CAI's P/CF has been as high as 5.92 and as low as 2.23, with a median of 3.79.

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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