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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 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 company to watch right now is Ryder System (R - Free Report) . R is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 6.69 right now. For comparison, its industry sports an average P/E of 12.80. R's Forward P/E has been as high as 11.35 and as low as 5.53, with a median of 8.06, all within the past year.

Another notable valuation metric for R is its P/B ratio of 1.52. 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 solid versus its industry's average P/B of 1.65. Over the past year, R's P/B has been as high as 1.95 and as low as 1.22, with a median of 1.54.

If you're looking for another solid Transportation - Equipment and Leasing value stock, take a look at Triton . TRTN is a # 2 (Buy) stock with a Value score of A.

Triton is currently trading with a Forward P/E ratio of 6.09 while its PEG ratio sits at 0.61. Both of the company's metrics compare favorably to its industry's average P/E of 12.80 and average PEG ratio of 0.91.

TRTN's price-to-earnings ratio has been as high as 7.52 and as low as 4.68, with a median of 6.22, while its PEG ratio has been as high as 0.75 and as low as 0.47, with a median of 0.62, all within the past year.

Triton sports a P/B ratio of 1.61 as well; this compares to its industry's price-to-book ratio of 1.65. In the past 52 weeks, TRTN's P/B has been as high as 2.05, as low as 1.25, with a median of 1.67.

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


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