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Is Ryder System (R) Stock 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 company value investors might notice is Ryder System (R - Free Report) . R is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 5.91. This compares to its industry's average Forward P/E of 12.55. Over the past 52 weeks, R's Forward P/E has been as high as 15.52 and as low as 5.53, with a median of 9.88.

Another valuation metric that we should highlight is R's P/B ratio of 1.44. 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. R's current P/B looks attractive when compared to its industry's average P/B of 1.53. Over the past year, R's P/B has been as high as 2.06 and as low as 1.22, with a median of 1.70.

Textainer Group may be another strong Transportation - Equipment and Leasing stock to add to your shortlist. TGH is a # 2 (Buy) stock with a Value grade of A.

Additionally, Textainer Group has a P/B ratio of 1.16 while its industry's price-to-book ratio sits at 1.53. For TGH, this valuation metric has been as high as 1.40, as low as 0.97, with a median of 1.22 over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Ryder System and Textainer Group are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, R and TGH feels like a great value stock at the moment.


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