While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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.
One stock to keep an eye on is TravelCenters of America . TA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 11.61, while its industry has an average P/E of 20.76. Over the past year, TA's Forward P/E has been as high as 41.36 and as low as 9.67, with a median of 18.33.
Another notable valuation metric for TA is its P/B ratio of 1.02. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. TA's current P/B looks attractive when compared to its industry's average P/B of 2.83. Over the past 12 months, TA's P/B has been as high as 1.30 and as low as 0.65, with a median of 0.91.
Finally, investors should note that TA has a P/CF ratio of 3.74. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. TA's P/CF compares to its industry's average P/CF of 9.94. Over the past 52 weeks, TA's P/CF has been as high as 5.81 and as low as 2.38, with a median of 3.99.
These figures are just a handful of the metrics value investors tend to look at, but they help show that TravelCenters of America is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TA feels like a great value stock at the moment.
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Is TravelCenters of America (TA) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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.
One stock to keep an eye on is TravelCenters of America . TA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 11.61, while its industry has an average P/E of 20.76. Over the past year, TA's Forward P/E has been as high as 41.36 and as low as 9.67, with a median of 18.33.
Another notable valuation metric for TA is its P/B ratio of 1.02. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. TA's current P/B looks attractive when compared to its industry's average P/B of 2.83. Over the past 12 months, TA's P/B has been as high as 1.30 and as low as 0.65, with a median of 0.91.
Finally, investors should note that TA has a P/CF ratio of 3.74. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. TA's P/CF compares to its industry's average P/CF of 9.94. Over the past 52 weeks, TA's P/CF has been as high as 5.81 and as low as 2.38, with a median of 3.99.
These figures are just a handful of the metrics value investors tend to look at, but they help show that TravelCenters of America is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TA feels like a great value stock at the moment.