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Is Penske Automotive (PAG) a Great Value Stock Right Now?
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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Penske Automotive (PAG - Free Report) is a stock many investors are watching right now. PAG is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
We should also highlight that PAG has a P/B ratio of 2.26. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.52. PAG's P/B has been as high as 2.31 and as low as 1.39, with a median of 1.87, 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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PAG has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.49.
Finally, we should also recognize that PAG has a P/CF ratio of 7.41. 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. PAG's current P/CF looks attractive when compared to its industry's average P/CF of 10.86. Over the past 52 weeks, PAG's P/CF has been as high as 10.37 and as low as 5.61, with a median of 7.94.
These are just a handful of the figures considered in Penske Automotive's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PAG is an impressive value stock right now.
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Is Penske Automotive (PAG) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Penske Automotive (PAG - Free Report) is a stock many investors are watching right now. PAG is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
We should also highlight that PAG has a P/B ratio of 2.26. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.52. PAG's P/B has been as high as 2.31 and as low as 1.39, with a median of 1.87, 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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PAG has a P/S ratio of 0.35. This compares to its industry's average P/S of 0.49.
Finally, we should also recognize that PAG has a P/CF ratio of 7.41. 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. PAG's current P/CF looks attractive when compared to its industry's average P/CF of 10.86. Over the past 52 weeks, PAG's P/CF has been as high as 10.37 and as low as 5.61, with a median of 7.94.
These are just a handful of the figures considered in Penske Automotive's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PAG is an impressive value stock right now.