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Are Investors Undervaluing Avis Budget Group (CAR) Right Now?
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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.
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.
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 Avis Budget Group (CAR - Free Report) . CAR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.99 right now. For comparison, its industry sports an average P/E of 18.72. Over the last 12 months, CAR's Forward P/E has been as high as 15.49 and as low as 3.12, with a median of 7.01.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CAR has a P/S ratio of 0.79. This compares to its industry's average P/S of 1.1.
If you're looking for another solid Business - Services value stock, take a look at Secom Co. (SOMLY - Free Report) . SOMLY is a # 2 (Buy) stock with a Value score of A.
Additionally, Secom Co. has a P/B ratio of 1.41 while its industry's price-to-book ratio sits at 4.09. For SOMLY, this valuation metric has been as high as 1.65, as low as 1.23, with a median of 1.45 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Avis Budget Group and Secom Co. are likely undervalued currently. And when considering the strength of its earnings outlook, CAR and SOMLY sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Avis Budget Group (CAR) 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.
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.
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 Avis Budget Group (CAR - Free Report) . CAR is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 9.99 right now. For comparison, its industry sports an average P/E of 18.72. Over the last 12 months, CAR's Forward P/E has been as high as 15.49 and as low as 3.12, with a median of 7.01.
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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CAR has a P/S ratio of 0.79. This compares to its industry's average P/S of 1.1.
If you're looking for another solid Business - Services value stock, take a look at Secom Co. (SOMLY - Free Report) . SOMLY is a # 2 (Buy) stock with a Value score of A.
Additionally, Secom Co. has a P/B ratio of 1.41 while its industry's price-to-book ratio sits at 4.09. For SOMLY, this valuation metric has been as high as 1.65, as low as 1.23, with a median of 1.45 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Avis Budget Group and Secom Co. are likely undervalued currently. And when considering the strength of its earnings outlook, CAR and SOMLY sticks out as one of the market's strongest value stocks.