While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 value investors might notice is Textainer Group . TGH is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 6.25, while its industry has an average P/E of 15.60. Over the past 52 weeks, TGH's Forward P/E has been as high as 10.75 and as low as 5.51, with a median of 7.01.
Another notable valuation metric for TGH is its P/B ratio of 1.15. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.70. TGH's P/B has been as high as 1.40 and as low as 0.70, with a median of 1.13, over the past year.
Finally, investors will want to recognize that TGH has a P/CF ratio of 3.12. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.96. Over the past year, TGH's P/CF has been as high as 4.27 and as low as 2.56, with a median of 3.40.
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.
Shares of Triton currently holds a Forward P/E ratio of 5.95, and its PEG ratio is 0.59. In comparison, its industry sports average P/E and PEG ratios of 15.60 and 1.23.
TRTN's Forward P/E has been as high as 9.09 and as low as 5.82, with a median of 6.59. During the same time period, 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 1.65 compared to its industry's price-to-book ratio of 1.70. Over the past year, its P/B ratio has been as high as 2.08, as low as 1.46, with a median of 1.68.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Textainer Group and Triton are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TGH and TRTN feels like a great value stock at the moment.
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Are These Transportation Stocks a Great Value Stocks Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 value investors might notice is Textainer Group . TGH is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 6.25, while its industry has an average P/E of 15.60. Over the past 52 weeks, TGH's Forward P/E has been as high as 10.75 and as low as 5.51, with a median of 7.01.
Another notable valuation metric for TGH is its P/B ratio of 1.15. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.70. TGH's P/B has been as high as 1.40 and as low as 0.70, with a median of 1.13, over the past year.
Finally, investors will want to recognize that TGH has a P/CF ratio of 3.12. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.96. Over the past year, TGH's P/CF has been as high as 4.27 and as low as 2.56, with a median of 3.40.
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.
Shares of Triton currently holds a Forward P/E ratio of 5.95, and its PEG ratio is 0.59. In comparison, its industry sports average P/E and PEG ratios of 15.60 and 1.23.
TRTN's Forward P/E has been as high as 9.09 and as low as 5.82, with a median of 6.59. During the same time period, 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 1.65 compared to its industry's price-to-book ratio of 1.70. Over the past year, its P/B ratio has been as high as 2.08, as low as 1.46, with a median of 1.68.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Textainer Group and Triton are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TGH and TRTN feels like a great value stock at the moment.