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Are These Transportation Stocks Undervalued 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.

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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Matson (MATX - Free Report) is a stock many investors are watching right now. MATX is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 8.14 right now. For comparison, its industry sports an average P/E of 12.02. Over the past year, MATX's Forward P/E has been as high as 16.66 and as low as 5.08, with a median of 9.74.

Investors should also recognize that MATX has a P/B ratio of 2.69. 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. MATX's current P/B looks attractive when compared to its industry's average P/B of 4.05. MATX's P/B has been as high as 3.47 and as low as 2.15, with a median of 2.67, over the past year.

Another great Transportation - Services stock you could consider is Schneider National (SNDR - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Schneider National is trading at a forward earnings multiple of 10.20 at the moment, with a PEG ratio of 0.49. This compares to its industry's average P/E of 12.02 and average PEG ratio of 0.75.

SNDR's Forward P/E has been as high as 16.10 and as low as 10.11, with a median of 11.91. During the same time period, its PEG ratio has been as high as 1.15, as low as 0.49, with a median of 0.66.

Furthermore, Schneider National holds a P/B ratio of 1.96 and its industry's price-to-book ratio is 4.05. SNDR's P/B has been as high as 2.23, as low as 1.67, with a median of 1.98 over the past 12 months.

These are only a few of the key metrics included in Matson and Schneider National strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, MATX and SNDR look like an impressive value stock at the moment.


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