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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.
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.
AutoNation (AN - Free Report) is a stock many investors are watching right now. AN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors will also notice that AN has a PEG ratio of 0.50. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AN's PEG compares to its industry's average PEG of 0.61. Over the last 12 months, AN's PEG has been as high as 4.19 and as low as 0.45, with a median of 1.11.
Another notable valuation metric for AN is its P/B ratio of 2.48. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. AN's current P/B looks attractive when compared to its industry's average P/B of 2.58. AN's P/B has been as high as 2.69 and as low as 1.08, with a median of 1.94, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AN has a P/S ratio of 0.38. This compares to its industry's average P/S of 0.46.
Finally, our model also underscores that AN has a P/CF ratio of 7.80. 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 stock's P/CF looks attractive against its industry's average P/CF of 9.59. AN's P/CF has been as high as 9.20 and as low as 4.21, with a median of 6.92, all within the past year.
These are only a few of the key metrics included in AutoNation'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, AN looks like an impressive value stock at the moment.
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Is AutoNation (AN) a Great Value Stock Right Now?
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.
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.
AutoNation (AN - Free Report) is a stock many investors are watching right now. AN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Investors will also notice that AN has a PEG ratio of 0.50. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AN's PEG compares to its industry's average PEG of 0.61. Over the last 12 months, AN's PEG has been as high as 4.19 and as low as 0.45, with a median of 1.11.
Another notable valuation metric for AN is its P/B ratio of 2.48. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. AN's current P/B looks attractive when compared to its industry's average P/B of 2.58. AN's P/B has been as high as 2.69 and as low as 1.08, with a median of 1.94, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AN has a P/S ratio of 0.38. This compares to its industry's average P/S of 0.46.
Finally, our model also underscores that AN has a P/CF ratio of 7.80. 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 stock's P/CF looks attractive against its industry's average P/CF of 9.59. AN's P/CF has been as high as 9.20 and as low as 4.21, with a median of 6.92, all within the past year.
These are only a few of the key metrics included in AutoNation'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, AN looks like an impressive value stock at the moment.