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Are These Retail-Wholesale Stocks Undervalued 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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 Lithia Motors (LAD - Free Report) . LAD is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also recognize that LAD has a P/B ratio of 1.91. Investors use the P/B ratio to look at a stock's market value versus 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 2.27. Over the past year, LAD's P/B has been as high as 4.12 and as low as 1.86, with a median of 2.55.
Finally, investors will want to recognize that LAD has a P/CF ratio of 7.73. 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. LAD's P/CF compares to its industry's average P/CF of 9.50. Within the past 12 months, LAD's P/CF has been as high as 18.69 and as low as 7.54, with a median of 10.58.
Investors could also keep in mind Sonic Automotive (SAH - Free Report) , an Automotive - Retail and Whole Sales stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Sonic Automotive also has a P/B ratio of 2.03 compared to its industry's price-to-book ratio of 2.27. Over the past year, its P/B ratio has been as high as 2.83, as low as 1.81, with a median of 2.22.
These are just a handful of the figures considered in Lithia Motors and Sonic Automotive'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 LAD and SAH is an impressive value stock right now.
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Are These Retail-Wholesale Stocks Undervalued 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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 Lithia Motors (LAD - Free Report) . LAD is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also recognize that LAD has a P/B ratio of 1.91. Investors use the P/B ratio to look at a stock's market value versus 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 2.27. Over the past year, LAD's P/B has been as high as 4.12 and as low as 1.86, with a median of 2.55.
Finally, investors will want to recognize that LAD has a P/CF ratio of 7.73. 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. LAD's P/CF compares to its industry's average P/CF of 9.50. Within the past 12 months, LAD's P/CF has been as high as 18.69 and as low as 7.54, with a median of 10.58.
Investors could also keep in mind Sonic Automotive (SAH - Free Report) , an Automotive - Retail and Whole Sales stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Sonic Automotive also has a P/B ratio of 2.03 compared to its industry's price-to-book ratio of 2.27. Over the past year, its P/B ratio has been as high as 2.83, as low as 1.81, with a median of 2.22.
These are just a handful of the figures considered in Lithia Motors and Sonic Automotive'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 LAD and SAH is an impressive value stock right now.