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, 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 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 value investors might notice is Textainer Group . TGH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 6.53, while its industry has an average P/E of 16.12. Over the past year, TGH's Forward P/E has been as high as 10.75 and as low as 5.51, with a median of 7.06.
We should also highlight that TGH has a P/B ratio of 1.21. 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. TGH's current P/B looks attractive when compared to its industry's average P/B of 1.75. Over the past year, TGH's P/B has been as high as 1.40 and as low as 0.70, with a median of 1.10.
Finally, we should also recognize that TGH has a P/CF ratio of 3.26. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 11.31. TGH's P/CF has been as high as 4.27 and as low as 2.56, with a median of 3.40, all within the past year.
Investors could also keep in mind Triton , an Transportation - Equipment and Leasing stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Triton is trading at a forward earnings multiple of 6.48 at the moment, with a PEG ratio of 0.65. This compares to its industry's average P/E of 16.12 and average PEG ratio of 1.27.
Over the last 12 months, TRTN's P/E has been as high as 9.09, as low as 5.82, with a median of 6.65, and its PEG ratio has been as high as 0.91, as low as 0.58, with a median of 0.66.
Triton also has a P/B ratio of 1.80 compared to its industry's price-to-book ratio of 1.75. Over the past year, its P/B ratio has been as high as 2.08, as low as 1.46, with a median of 1.66.
These are only a few of the key metrics included in Textainer Group and Triton strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, TGH and TRTN look like an impressive value stock at the moment.
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Are Investors Undervaluing These Transportation Stocks 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, 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 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 value investors might notice is Textainer Group . TGH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 6.53, while its industry has an average P/E of 16.12. Over the past year, TGH's Forward P/E has been as high as 10.75 and as low as 5.51, with a median of 7.06.
We should also highlight that TGH has a P/B ratio of 1.21. 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. TGH's current P/B looks attractive when compared to its industry's average P/B of 1.75. Over the past year, TGH's P/B has been as high as 1.40 and as low as 0.70, with a median of 1.10.
Finally, we should also recognize that TGH has a P/CF ratio of 3.26. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 11.31. TGH's P/CF has been as high as 4.27 and as low as 2.56, with a median of 3.40, all within the past year.
Investors could also keep in mind Triton , an Transportation - Equipment and Leasing stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Triton is trading at a forward earnings multiple of 6.48 at the moment, with a PEG ratio of 0.65. This compares to its industry's average P/E of 16.12 and average PEG ratio of 1.27.
Over the last 12 months, TRTN's P/E has been as high as 9.09, as low as 5.82, with a median of 6.65, and its PEG ratio has been as high as 0.91, as low as 0.58, with a median of 0.66.
Triton also has a P/B ratio of 1.80 compared to its industry's price-to-book ratio of 1.75. Over the past year, its P/B ratio has been as high as 2.08, as low as 1.46, with a median of 1.66.
These are only a few of the key metrics included in Textainer Group and Triton strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, TGH and TRTN look like an impressive value stock at the moment.