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Are These Transportation Stocks a Great Value 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, 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 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.

Textainer Group is a stock many investors are watching right now. TGH 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 5.92 right now. For comparison, its industry sports an average P/E of 11.36. Over the past year, TGH's Forward P/E has been as high as 8.11 and as low as 5.51, with a median of 6.87.

We should also highlight that TGH has a P/B ratio of 1.19. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.59. Over the past year, TGH's P/B has been as high as 1.40 and as low as 0.94, with a median of 1.21.

Finally, we should also recognize that TGH has a P/CF ratio of 3.10. 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 8.29. Over the past 52 weeks, TGH's P/CF has been as high as 4.27 and as low as 2.98, with a median of 3.41.

If you're looking for another solid Transportation - Equipment and Leasing value stock, take a look at Triton . TRTN is a # 2 (Buy) stock with a Value score of A.

Triton is trading at a forward earnings multiple of 6.19 at the moment, with a PEG ratio of 0.62. This compares to its industry's average P/E of 11.36 and average PEG ratio of 0.90.

Over the last 12 months, TRTN's P/E has been as high as 8.41, as low as 5.82, with a median of 6.44, and its PEG ratio has been as high as 0.84, as low as 0.58, with a median of 0.64.

Additionally, Triton has a P/B ratio of 1.88 while its industry's price-to-book ratio sits at 1.59. For TRTN, this valuation metric has been as high as 2.08, as low as 1.46, with a median of 1.70 over the past year.

These are just a handful of the figures considered in Textainer Group and Triton'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 TGH and TRTN is an impressive value stock right now.

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