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Is Covenant Logistics Group (CVLG) Stock Undervalued 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.
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 stock to keep an eye on is Covenant Logistics Group (CVLG - Free Report) . CVLG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.60. This compares to its industry's average Forward P/E of 15.23. Over the last 12 months, CVLG's Forward P/E has been as high as 9.80 and as low as 4.97, with a median of 6.54.
We should also highlight that CVLG has a P/B ratio of 1.37. 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. CVLG's current P/B looks attractive when compared to its industry's average P/B of 3.25. CVLG's P/B has been as high as 1.75 and as low as 0.81, with a median of 1.15, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 0.44. This compares to its industry's average P/S of 1.04.
Finally, investors will want to recognize that CVLG has a P/CF ratio of 2.98. 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. CVLG's current P/CF looks attractive when compared to its industry's average P/CF of 10.12. Over the past 52 weeks, CVLG's P/CF has been as high as 8.04 and as low as 2.42, with a median of 3.32.
If you're looking for another solid Transportation - Truck value stock, take a look at P.A.M. Transportation Services (PTSI - Free Report) . PTSI is a # 1 (Strong Buy) stock with a Value score of A.
P.A.M. Transportation Services sports a P/B ratio of 2.61 as well; this compares to its industry's price-to-book ratio of 3.25. In the past 52 weeks, PTSI's P/B has been as high as 4.70, as low as 2.32, with a median of 2.95.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Covenant Logistics Group and P.A.M. Transportation Services are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CVLG and PTSI feels like a great value stock at the moment.
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Is Covenant Logistics Group (CVLG) Stock Undervalued 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.
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 stock to keep an eye on is Covenant Logistics Group (CVLG - Free Report) . CVLG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.60. This compares to its industry's average Forward P/E of 15.23. Over the last 12 months, CVLG's Forward P/E has been as high as 9.80 and as low as 4.97, with a median of 6.54.
We should also highlight that CVLG has a P/B ratio of 1.37. 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. CVLG's current P/B looks attractive when compared to its industry's average P/B of 3.25. CVLG's P/B has been as high as 1.75 and as low as 0.81, with a median of 1.15, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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 0.44. This compares to its industry's average P/S of 1.04.
Finally, investors will want to recognize that CVLG has a P/CF ratio of 2.98. 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. CVLG's current P/CF looks attractive when compared to its industry's average P/CF of 10.12. Over the past 52 weeks, CVLG's P/CF has been as high as 8.04 and as low as 2.42, with a median of 3.32.
If you're looking for another solid Transportation - Truck value stock, take a look at P.A.M. Transportation Services (PTSI - Free Report) . PTSI is a # 1 (Strong Buy) stock with a Value score of A.
P.A.M. Transportation Services sports a P/B ratio of 2.61 as well; this compares to its industry's price-to-book ratio of 3.25. In the past 52 weeks, PTSI's P/B has been as high as 4.70, as low as 2.32, with a median of 2.95.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Covenant Logistics Group and P.A.M. Transportation Services are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CVLG and PTSI feels like a great value stock at the moment.