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Is Wabash National (WNC) Stock Undervalued 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Wabash National (WNC - Free Report) . WNC is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 8.18, which compares to its industry's average of 20.29. Over the last 12 months, WNC's Forward P/E has been as high as 11.48 and as low as 5.85, with a median of 7.82.
Another notable valuation metric for WNC is its P/B ratio of 2.86. The P/B is a method of comparing a stock's market value to 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 3.18. Over the past year, WNC's P/B has been as high as 3.61 and as low as 1.79, with a median of 2.40.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.45. This compares to its industry's average P/S of 0.73.
These are only a few of the key metrics included in Wabash National's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, WNC looks like an impressive value stock at the moment.