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Are Investors Undervaluing AutoNation (AN) 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 AutoNation (AN - Free Report) . AN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AN has a P/S ratio of 0.25. This compares to its industry's average P/S of 0.36.
Finally, our model also underscores that AN has a P/CF ratio of 4.56. 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. This stock's P/CF looks attractive against its industry's average P/CF of 6.26. Over the past 52 weeks, AN's P/CF has been as high as 5.03 and as low as 3.18, with a median of 4.01.
Investors could also keep in mind Rush Enterprises (RUSHA - Free Report) , an Automotive - Retail and Whole Sales stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Rush Enterprises is currently trading with a Forward P/E ratio of 10.97 while its PEG ratio sits at 0.73. Both of the company's metrics compare favorably to its industry's average P/E of 7.11 and average PEG ratio of 0.92.
Over the past year, RUSHA's P/E has been as high as 11.80, as low as 8.03, with a median of 9.80; its PEG ratio has been as high as 0.79, as low as 0.54, with a median of 0.61 during the same time period.
Furthermore, Rush Enterprises holds a P/B ratio of 1.85 and its industry's price-to-book ratio is 2.26. RUSHA's P/B has been as high as 2.03, as low as 1.43, with a median of 1.70 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that AutoNation and Rush Enterprises are likely undervalued currently. And when considering the strength of its earnings outlook, AN and RUSHA sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing AutoNation (AN) 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 AutoNation (AN - Free Report) . AN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AN has a P/S ratio of 0.25. This compares to its industry's average P/S of 0.36.
Finally, our model also underscores that AN has a P/CF ratio of 4.56. 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. This stock's P/CF looks attractive against its industry's average P/CF of 6.26. Over the past 52 weeks, AN's P/CF has been as high as 5.03 and as low as 3.18, with a median of 4.01.
Investors could also keep in mind Rush Enterprises (RUSHA - Free Report) , an Automotive - Retail and Whole Sales stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Rush Enterprises is currently trading with a Forward P/E ratio of 10.97 while its PEG ratio sits at 0.73. Both of the company's metrics compare favorably to its industry's average P/E of 7.11 and average PEG ratio of 0.92.
Over the past year, RUSHA's P/E has been as high as 11.80, as low as 8.03, with a median of 9.80; its PEG ratio has been as high as 0.79, as low as 0.54, with a median of 0.61 during the same time period.
Furthermore, Rush Enterprises holds a P/B ratio of 1.85 and its industry's price-to-book ratio is 2.26. RUSHA's P/B has been as high as 2.03, as low as 1.43, with a median of 1.70 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that AutoNation and Rush Enterprises are likely undervalued currently. And when considering the strength of its earnings outlook, AN and RUSHA sticks out as one of the market's strongest value stocks.