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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 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 stock to keep an eye on is AutoNation (AN - Free Report) . AN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.57, while its industry has an average P/E of 6.59. AN's Forward P/E has been as high as 8.13 and as low as 4.47, with a median of 5.50, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AN has a P/S ratio of 0.24. This compares to its industry's average P/S of 0.31.
Finally, investors will want to recognize that AN has a P/CF ratio of 4.25. 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. AN's P/CF compares to its industry's average P/CF of 5.53. Within the past 12 months, AN's P/CF has been as high as 4.97 and as low as 3.18, with a median of 4.
Another great Automotive - Retail and Whole Sales stock you could consider is Rush Enterprises (RUSHA - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Rush Enterprises is currently trading with a Forward P/E ratio of 10.57 while its PEG ratio sits at 0.70. Both of the company's metrics compare favorably to its industry's average P/E of 6.59 and average PEG ratio of 0.94.
RUSHA's Forward P/E has been as high as 11.78 and as low as 8.03, with a median of 9.80. During the same time period, its PEG ratio has been as high as 0.79, as low as 0.54, with a median of 0.65.
Rush Enterprises sports a P/B ratio of 1.68 as well; this compares to its industry's price-to-book ratio of 1.94. In the past 52 weeks, RUSHA's P/B has been as high as 1.99, as low as 1.43, with a median of 1.67.
These are only a few of the key metrics included in AutoNation and Rush Enterprises strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, AN and RUSHA look like an impressive value stock at the moment.
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Is AutoNation (AN) 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.
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 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 stock to keep an eye on is AutoNation (AN - Free Report) . AN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.57, while its industry has an average P/E of 6.59. AN's Forward P/E has been as high as 8.13 and as low as 4.47, with a median of 5.50, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AN has a P/S ratio of 0.24. This compares to its industry's average P/S of 0.31.
Finally, investors will want to recognize that AN has a P/CF ratio of 4.25. 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. AN's P/CF compares to its industry's average P/CF of 5.53. Within the past 12 months, AN's P/CF has been as high as 4.97 and as low as 3.18, with a median of 4.
Another great Automotive - Retail and Whole Sales stock you could consider is Rush Enterprises (RUSHA - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Rush Enterprises is currently trading with a Forward P/E ratio of 10.57 while its PEG ratio sits at 0.70. Both of the company's metrics compare favorably to its industry's average P/E of 6.59 and average PEG ratio of 0.94.
RUSHA's Forward P/E has been as high as 11.78 and as low as 8.03, with a median of 9.80. During the same time period, its PEG ratio has been as high as 0.79, as low as 0.54, with a median of 0.65.
Rush Enterprises sports a P/B ratio of 1.68 as well; this compares to its industry's price-to-book ratio of 1.94. In the past 52 weeks, RUSHA's P/B has been as high as 1.99, as low as 1.43, with a median of 1.67.
These are only a few of the key metrics included in AutoNation and Rush Enterprises strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, AN and RUSHA look like an impressive value stock at the moment.