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Should Value Investors Buy Triton International (TRTN) Stock?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Triton International . TRTN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 6.29, while its industry has an average P/E of 15.02. Over the last 12 months, TRTN's Forward P/E has been as high as 9.09 and as low as 5.82, with a median of 7.64.

Investors will also notice that TRTN has a PEG ratio of 0.63. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. TRTN's PEG compares to its industry's average PEG of 0.98. TRTN's PEG has been as high as 0.91 and as low as 0.58, with a median of 0.76, all within the past year.

Finally, investors should note that TRTN has a P/CF ratio of 3.59. 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 10.26. Over the past year, TRTN's P/CF has been as high as 4.53 and as low as 2.78, with a median of 3.60.

Value investors will likely look at more than just these metrics, but the above data helps show that Triton International is likely undervalued currently. And when considering the strength of its earnings outlook, TRTN sticks out at as one of the market's strongest value stocks.

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