Back to top

Image: Bigstock

Should Value Investors Buy Triton International (TRTN) Stock?

Read MoreHide Full Article

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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 to watch right now is Triton International (TRTN - Free Report) . TRTN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 6.39. This compares to its industry's average Forward P/E of 16.12. TRTN's Forward P/E has been as high as 9.09 and as low as 6.01, with a median of 7.77, all within the past year.

TRTN is also sporting a PEG ratio of 0.64. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TRTN's industry has an average PEG of 1.12 right now. TRTN's PEG has been as high as 0.91 and as low as 0.60, with a median of 0.78, all within the past year.

Finally, investors will want to recognize that TRTN has a P/CF ratio of 3.56. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. TRTN's current P/CF looks attractive when compared to its industry's average P/CF of 9.11. TRTN's P/CF has been as high as 4.53 and as low as 2.26, with a median of 3.54, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Triton International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TRTN feels like a great value stock at the moment.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Triton International Limited (TRTN) - free report >>

Published in