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Are Investors Undervaluing Covenant Logistics Group (CVLG) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Covenant Logistics Group (CVLG - Free Report) . CVLG is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 8.10, which compares to its industry's average of 17.19. CVLG's Forward P/E has been as high as 9.80 and as low as 4.97, with a median of 6.52, all within the past year.
Another notable valuation metric for CVLG is its P/B ratio of 1.43. The P/B ratio pits a stock's market value against 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 3.54. Over the past year, CVLG's P/B has been as high as 1.75 and as low as 0.81, with a median of 1.15.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CVLG has a P/S ratio of 0.42. This compares to its industry's average P/S of 1.07.
Finally, our model also underscores that CVLG has a P/CF ratio of 3.85. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.83. Over the past year, CVLG's P/CF has been as high as 8.04 and as low as 2.42, with a median of 3.45.
KnightSwift Transportation (KNX - Free Report) may be another strong Transportation - Truck stock to add to your shortlist. KNX is a # 2 (Buy) stock with a Value grade of A.
Shares of KnightSwift Transportation currently holds a Forward P/E ratio of 10.83, and its PEG ratio is 0.72. In comparison, its industry sports average P/E and PEG ratios of 17.19 and 1.17.
KNX's Forward P/E has been as high as 13.50 and as low as 8.56, with a median of 10.85. During the same time period, its PEG ratio has been as high as 0.90, as low as 0.57, with a median of 0.72.
Furthermore, KnightSwift Transportation holds a P/B ratio of 1.34 and its industry's price-to-book ratio is 3.54. KNX's P/B has been as high as 1.62, as low as 1.09, with a median of 1.36 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Covenant Logistics Group and KnightSwift Transportation are likely undervalued currently. And when considering the strength of its earnings outlook, CVLG and KNX sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Covenant Logistics Group (CVLG) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Covenant Logistics Group (CVLG - Free Report) . CVLG is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 8.10, which compares to its industry's average of 17.19. CVLG's Forward P/E has been as high as 9.80 and as low as 4.97, with a median of 6.52, all within the past year.
Another notable valuation metric for CVLG is its P/B ratio of 1.43. The P/B ratio pits a stock's market value against 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 3.54. Over the past year, CVLG's P/B has been as high as 1.75 and as low as 0.81, with a median of 1.15.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CVLG has a P/S ratio of 0.42. This compares to its industry's average P/S of 1.07.
Finally, our model also underscores that CVLG has a P/CF ratio of 3.85. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.83. Over the past year, CVLG's P/CF has been as high as 8.04 and as low as 2.42, with a median of 3.45.
KnightSwift Transportation (KNX - Free Report) may be another strong Transportation - Truck stock to add to your shortlist. KNX is a # 2 (Buy) stock with a Value grade of A.
Shares of KnightSwift Transportation currently holds a Forward P/E ratio of 10.83, and its PEG ratio is 0.72. In comparison, its industry sports average P/E and PEG ratios of 17.19 and 1.17.
KNX's Forward P/E has been as high as 13.50 and as low as 8.56, with a median of 10.85. During the same time period, its PEG ratio has been as high as 0.90, as low as 0.57, with a median of 0.72.
Furthermore, KnightSwift Transportation holds a P/B ratio of 1.34 and its industry's price-to-book ratio is 3.54. KNX's P/B has been as high as 1.62, as low as 1.09, with a median of 1.36 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Covenant Logistics Group and KnightSwift Transportation are likely undervalued currently. And when considering the strength of its earnings outlook, CVLG and KNX sticks out as one of the market's strongest value stocks.