Back to top

Image: Bigstock

Should Value Investors Buy These Transportation Stocks?

Read MoreHide Full Article

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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Ryder System (R - Free Report) . R is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 8.93, which compares to its industry's average of 15.84. R's Forward P/E has been as high as 17.66 and as low as 8.53, with a median of 12.23, all within the past year.

Another notable valuation metric for R is its P/B ratio of 1.70. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.72. R's P/B has been as high as 2.06 and as low as 1.47, with a median of 1.76, over the past year.

Investors could also keep in mind Triton (TRTN - Free Report) , an Transportation - Equipment and Leasing stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Shares of Triton are currently trading at a forward earnings multiple of 6.30 and a PEG ratio of 0.63 compared to its industry's P/E and PEG ratios of 15.84 and 1.25, respectively.


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Ryder System, Inc. (R) - free report >>

Triton International Limited (TRTN) - free report >>

Published in