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Are These Retail-Wholesale Stocks Undervalued Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One stock to keep an eye on is Asbury Automotive Group (ABG - Free Report) . ABG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 5.66, while its industry has an average P/E of 6.26. Over the past year, ABG's Forward P/E has been as high as 174.50 and as low as 5.12, with a median of 8.79.
Investors should also note that ABG holds a PEG ratio of 0.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ABG's PEG compares to its industry's average PEG of 0.35. Over the last 12 months, ABG's PEG has been as high as 9.42 and as low as 0.28, with a median of 0.47.
Another valuation metric that we should highlight is ABG's P/B ratio of 2.08. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. ABG's current P/B looks attractive when compared to its industry's average P/B of 2.28. Within the past 52 weeks, ABG's P/B has been as high as 4.28 and as low as 1.66, with a median of 3.07.
Finally, investors will want to recognize that ABG has a P/CF ratio of 6.97. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 7. Within the past 12 months, ABG's P/CF has been as high as 12.40 and as low as 5.55, with a median of 7.31.
Lithia Motors (LAD - Free Report) may be another strong Automotive - Retail and Whole Sales stock to add to your shortlist. LAD is a # 2 (Buy) stock with a Value grade of A.
Shares of Lithia Motors currently holds a Forward P/E ratio of 8.48, and its PEG ratio is 1.84. In comparison, its industry sports average P/E and PEG ratios of 6.26 and 0.35.
LAD's Forward P/E has been as high as 19.87 and as low as 7.57, with a median of 9.80. During the same time period, its PEG ratio has been as high as 1.88, as low as 0.35, with a median of 0.47.
Additionally, Lithia Motors has a P/B ratio of 2.17 while its industry's price-to-book ratio sits at 2.28. For LAD, this valuation metric has been as high as 4.12, as low as 1.78, with a median of 2.34 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Asbury Automotive Group and Lithia Motors are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ABG and LAD feels like a great value stock at the moment.
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Are These Retail-Wholesale Stocks Undervalued Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One stock to keep an eye on is Asbury Automotive Group (ABG - Free Report) . ABG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 5.66, while its industry has an average P/E of 6.26. Over the past year, ABG's Forward P/E has been as high as 174.50 and as low as 5.12, with a median of 8.79.
Investors should also note that ABG holds a PEG ratio of 0.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ABG's PEG compares to its industry's average PEG of 0.35. Over the last 12 months, ABG's PEG has been as high as 9.42 and as low as 0.28, with a median of 0.47.
Another valuation metric that we should highlight is ABG's P/B ratio of 2.08. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. ABG's current P/B looks attractive when compared to its industry's average P/B of 2.28. Within the past 52 weeks, ABG's P/B has been as high as 4.28 and as low as 1.66, with a median of 3.07.
Finally, investors will want to recognize that ABG has a P/CF ratio of 6.97. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 7. Within the past 12 months, ABG's P/CF has been as high as 12.40 and as low as 5.55, with a median of 7.31.
Lithia Motors (LAD - Free Report) may be another strong Automotive - Retail and Whole Sales stock to add to your shortlist. LAD is a # 2 (Buy) stock with a Value grade of A.
Shares of Lithia Motors currently holds a Forward P/E ratio of 8.48, and its PEG ratio is 1.84. In comparison, its industry sports average P/E and PEG ratios of 6.26 and 0.35.
LAD's Forward P/E has been as high as 19.87 and as low as 7.57, with a median of 9.80. During the same time period, its PEG ratio has been as high as 1.88, as low as 0.35, with a median of 0.47.
Additionally, Lithia Motors has a P/B ratio of 2.17 while its industry's price-to-book ratio sits at 2.28. For LAD, this valuation metric has been as high as 4.12, as low as 1.78, with a median of 2.34 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Asbury Automotive Group and Lithia Motors are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ABG and LAD feels like a great value stock at the moment.