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Are Investors Undervaluing Textainer Group (TGH) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Textainer Group is a stock many investors are watching right now. TGH is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 5.28. This compares to its industry's average Forward P/E of 10.99. Over the past year, TGH's Forward P/E has been as high as 8.11 and as low as 4.18, with a median of 6.12.

Another notable valuation metric for TGH is its P/B ratio of 0.91. 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. This stock's P/B looks attractive against its industry's average P/B of 1.41. Over the past 12 months, TGH's P/B has been as high as 1.40 and as low as 0.79, with a median of 1.17.

Finally, investors should note that TGH has a P/CF ratio of 2.38. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. TGH's P/CF compares to its industry's average P/CF of 7.03. Within the past 12 months, TGH's P/CF has been as high as 3.78 and as low as 2.07, with a median of 3.12.

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

Shares of Triton are currently trading at a forward earnings multiple of 5.54 and a PEG ratio of 0.55 compared to its industry's P/E and PEG ratios of 10.99 and 0.78, respectively.

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