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Are Investors Undervaluing These Transportation 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Air Lease (AL - Free Report) . AL 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 8.58 right now. For comparison, its industry sports an average P/E of 14.15. Over the past 52 weeks, AL's Forward P/E has been as high as 23.52 and as low as 6.59, with a median of 9.54.
We also note that AL holds a PEG ratio of 0.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AL's industry has an average PEG of 1.20 right now. AL's PEG has been as high as 1.47 and as low as 0.41, with a median of 0.57, all within the past year.
Investors should also recognize that AL has a P/B ratio of 0.73. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.71. Within the past 52 weeks, AL's P/B has been as high as 0.94 and as low as 0.55, with a median of 0.73.
Finally, investors should note that AL has a P/CF ratio of 3.60. 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. AL's P/CF compares to its industry's average P/CF of 8.49. Over the past 52 weeks, AL's P/CF has been as high as 4.23 and as low as 2.71, with a median of 3.61.
Triton may be another strong Transportation - Equipment and Leasing stock to add to your shortlist. TRTN is a # 2 (Buy) stock with a Value grade of A.
Shares of Triton are currently trading at a forward earnings multiple of 6.62 and a PEG ratio of 0.66 compared to its industry's P/E and PEG ratios of 14.15 and 1.20, respectively.
Over the last 12 months, TRTN's P/E has been as high as 7.92, as low as 5.82, with a median of 6.40, and its PEG ratio has been as high as 0.79, as low as 0.58, with a median of 0.64.
Triton sports a P/B ratio of 2.01 as well; this compares to its industry's price-to-book ratio of 1.71. In the past 52 weeks, TRTN's P/B has been as high as 2.05, as low as 1.46, with a median of 1.70.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Air Lease and Triton are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AL and TRTN feels like a great value stock at the moment.
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Are Investors Undervaluing These Transportation 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One stock to keep an eye on is Air Lease (AL - Free Report) . AL 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 8.58 right now. For comparison, its industry sports an average P/E of 14.15. Over the past 52 weeks, AL's Forward P/E has been as high as 23.52 and as low as 6.59, with a median of 9.54.
We also note that AL holds a PEG ratio of 0.54. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. AL's industry has an average PEG of 1.20 right now. AL's PEG has been as high as 1.47 and as low as 0.41, with a median of 0.57, all within the past year.
Investors should also recognize that AL has a P/B ratio of 0.73. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.71. Within the past 52 weeks, AL's P/B has been as high as 0.94 and as low as 0.55, with a median of 0.73.
Finally, investors should note that AL has a P/CF ratio of 3.60. 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. AL's P/CF compares to its industry's average P/CF of 8.49. Over the past 52 weeks, AL's P/CF has been as high as 4.23 and as low as 2.71, with a median of 3.61.
Triton may be another strong Transportation - Equipment and Leasing stock to add to your shortlist. TRTN is a # 2 (Buy) stock with a Value grade of A.
Shares of Triton are currently trading at a forward earnings multiple of 6.62 and a PEG ratio of 0.66 compared to its industry's P/E and PEG ratios of 14.15 and 1.20, respectively.
Over the last 12 months, TRTN's P/E has been as high as 7.92, as low as 5.82, with a median of 6.40, and its PEG ratio has been as high as 0.79, as low as 0.58, with a median of 0.64.
Triton sports a P/B ratio of 2.01 as well; this compares to its industry's price-to-book ratio of 1.71. In the past 52 weeks, TRTN's P/B has been as high as 2.05, as low as 1.46, with a median of 1.70.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Air Lease and Triton are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AL and TRTN feels like a great value stock at the moment.