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Are Investors Undervaluing These Retail-Wholesale Stocks Right Now?
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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Asbury Automotive Group (ABG - Free Report) . ABG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 5.76 right now. For comparison, its industry sports an average P/E of 6.57. Over the past year, ABG's Forward P/E has been as high as 14.39 and as low as 5.58, with a median of 10.18.
ABG is also sporting a PEG ratio of 0.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ABG's industry has an average PEG of 0.34 right now. Over the past 52 weeks, ABG's PEG has been as high as 0.78 and as low as 0.30, with a median of 0.55.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ABG has a P/S ratio of 0.4. This compares to its industry's average P/S of 0.42.
Finally, investors will want to recognize that ABG has a P/CF ratio of 5.93. 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 9.73. Over the past 52 weeks, ABG's P/CF has been as high as 12.40 and as low as 5.72, with a median of 8.55.
If you're looking for another solid Automotive - Retail and Whole Sales value stock, take a look at Rush Enterprises (RUSHA - Free Report) . RUSHA is a # 2 (Buy) stock with a Value score of A.
Rush Enterprises is currently trading with a Forward P/E ratio of 12.95 while its PEG ratio sits at 0.86. Both of the company's metrics compare favorably to its industry's average P/E of 6.57 and average PEG ratio of 0.34.
Over the last 12 months, RUSHA's P/E has been as high as 20.76, as low as 10.91, with a median of 13.46, and its PEG ratio has been as high as 1.38, as low as 0.73, with a median of 0.90.
Additionally, Rush Enterprises has a P/B ratio of 2.10 while its industry's price-to-book ratio sits at 2.33. For RUSHA, this valuation metric has been as high as 2.25, as low as 1.70, with a median of 1.91 over the past year.
These are just a handful of the figures considered in Asbury Automotive Group and Rush Enterprises'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 ABG and RUSHA is an impressive value stock right now.
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Are Investors Undervaluing These Retail-Wholesale 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 Asbury Automotive Group (ABG - Free Report) . ABG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 5.76 right now. For comparison, its industry sports an average P/E of 6.57. Over the past year, ABG's Forward P/E has been as high as 14.39 and as low as 5.58, with a median of 10.18.
ABG is also sporting a PEG ratio of 0.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ABG's industry has an average PEG of 0.34 right now. Over the past 52 weeks, ABG's PEG has been as high as 0.78 and as low as 0.30, with a median of 0.55.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ABG has a P/S ratio of 0.4. This compares to its industry's average P/S of 0.42.
Finally, investors will want to recognize that ABG has a P/CF ratio of 5.93. 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 9.73. Over the past 52 weeks, ABG's P/CF has been as high as 12.40 and as low as 5.72, with a median of 8.55.
If you're looking for another solid Automotive - Retail and Whole Sales value stock, take a look at Rush Enterprises (RUSHA - Free Report) . RUSHA is a # 2 (Buy) stock with a Value score of A.
Rush Enterprises is currently trading with a Forward P/E ratio of 12.95 while its PEG ratio sits at 0.86. Both of the company's metrics compare favorably to its industry's average P/E of 6.57 and average PEG ratio of 0.34.
Over the last 12 months, RUSHA's P/E has been as high as 20.76, as low as 10.91, with a median of 13.46, and its PEG ratio has been as high as 1.38, as low as 0.73, with a median of 0.90.
Additionally, Rush Enterprises has a P/B ratio of 2.10 while its industry's price-to-book ratio sits at 2.33. For RUSHA, this valuation metric has been as high as 2.25, as low as 1.70, with a median of 1.91 over the past year.
These are just a handful of the figures considered in Asbury Automotive Group and Rush Enterprises'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 ABG and RUSHA is an impressive value stock right now.