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Is Wabash National (WNC) a Great Value Stock Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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.
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 value investors might notice is Wabash National (WNC - Free Report) . WNC 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 9.70, while its industry has an average P/E of 22.62. WNC's Forward P/E has been as high as 11.48 and as low as 5.85, with a median of 7.82, all within the past year.
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. WNC has a P/S ratio of 0.52. This compares to its industry's average P/S of 0.84.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Wabash National is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, WNC feels like a great value stock at the moment.