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Are Investors Undervaluing Matson (MATX) 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 3.74, which compares to its industry's average of 10.47. Over the last 12 months, MATX's Forward P/E has been as high as 11.45 and as low as 3.37, with a median of 7.68.

Investors should also recognize that MATX has a P/B ratio of 1.55. 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 3.09. Over the past year, MATX's P/B has been as high as 3.21 and as low as 1.47, with a median of 2.54.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. MATX has a P/S ratio of 0.68. This compares to its industry's average P/S of 0.71.

If you're looking for another solid Transportation - Services value stock, take a look at Schneider National (SNDR - Free Report) . SNDR is a # 2 (Buy) stock with a Value score of A.

Shares of Schneider National are currently trading at a forward earnings multiple of 9.03 and a PEG ratio of 2.09 compared to its industry's P/E and PEG ratios of 10.47 and 0.70, respectively.

Over the last 12 months, SNDR's P/E has been as high as 12.70, as low as 8.54, with a median of 11.19, and its PEG ratio has been as high as 4.39, as low as 0.42, with a median of 0.65.

Furthermore, Schneider National holds a P/B ratio of 1.61 and its industry's price-to-book ratio is 3.09. SNDR's P/B has been as high as 2.09, as low as 1.51, with a median of 1.84 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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