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Are Investors Undervaluing These Retail-Wholesale Stocks Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
AutoNation (AN - Free Report) is a stock many investors are watching right now. AN 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 6.59 right now. For comparison, its industry sports an average P/E of 6.84. Over the last 12 months, AN's Forward P/E has been as high as 12.89 and as low as 6.26, with a median of 9.89.
We also note that AN holds a PEG ratio of 0.27. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AN's PEG compares to its industry's average PEG of 0.35. Within the past year, AN's PEG has been as high as 1.31 and as low as 0.26, with a median of 0.49.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AN has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.44.
Finally, investors should note that AN has a P/CF ratio of 6.19. 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. This stock's P/CF looks attractive against its industry's average P/CF of 10.20. AN's P/CF has been as high as 9.20 and as low as 5.85, with a median of 7.40, all within the past year.
If you're looking for another solid Automotive - Retail and Whole Sales value stock, take a look at Penske Automotive Group (PAG - Free Report) . PAG is a # 1 (Strong Buy) stock with a Value score of A.
Shares of Penske Automotive Group are currently trading at a forward earnings multiple of 7.91 and a PEG ratio of 0.39 compared to its industry's P/E and PEG ratios of 6.84 and 0.35, respectively.
PAG's Forward P/E has been as high as 11.62 and as low as 7.18, with a median of 8.90. During the same time period, its PEG ratio has been as high as 2.09, as low as 0.36, with a median of 0.95.
Additionally, Penske Automotive Group has a P/B ratio of 2.17 while its industry's price-to-book ratio sits at 2.44. For PAG, this valuation metric has been as high as 2.31, as low as 1.39, with a median of 1.92 over the past year.
These are only a few of the key metrics included in AutoNation and Penske Automotive Group strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, AN and PAG look like an impressive value stock at the moment.
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Are Investors Undervaluing These Retail-Wholesale Stocks Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
AutoNation (AN - Free Report) is a stock many investors are watching right now. AN 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 6.59 right now. For comparison, its industry sports an average P/E of 6.84. Over the last 12 months, AN's Forward P/E has been as high as 12.89 and as low as 6.26, with a median of 9.89.
We also note that AN holds a PEG ratio of 0.27. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AN's PEG compares to its industry's average PEG of 0.35. Within the past year, AN's PEG has been as high as 1.31 and as low as 0.26, with a median of 0.49.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AN has a P/S ratio of 0.3. This compares to its industry's average P/S of 0.44.
Finally, investors should note that AN has a P/CF ratio of 6.19. 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. This stock's P/CF looks attractive against its industry's average P/CF of 10.20. AN's P/CF has been as high as 9.20 and as low as 5.85, with a median of 7.40, all within the past year.
If you're looking for another solid Automotive - Retail and Whole Sales value stock, take a look at Penske Automotive Group (PAG - Free Report) . PAG is a # 1 (Strong Buy) stock with a Value score of A.
Shares of Penske Automotive Group are currently trading at a forward earnings multiple of 7.91 and a PEG ratio of 0.39 compared to its industry's P/E and PEG ratios of 6.84 and 0.35, respectively.
PAG's Forward P/E has been as high as 11.62 and as low as 7.18, with a median of 8.90. During the same time period, its PEG ratio has been as high as 2.09, as low as 0.36, with a median of 0.95.
Additionally, Penske Automotive Group has a P/B ratio of 2.17 while its industry's price-to-book ratio sits at 2.44. For PAG, this valuation metric has been as high as 2.31, as low as 1.39, with a median of 1.92 over the past year.
These are only a few of the key metrics included in AutoNation and Penske Automotive Group strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, AN and PAG look like an impressive value stock at the moment.