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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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 to watch right now is PACCAR (PCAR - Free Report) . PCAR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 11.02 right now. For comparison, its industry sports an average P/E of 28.83. Over the past year, PCAR's Forward P/E has been as high as 13.22 and as low as 10.39, with a median of 11.63.
PCAR is also sporting a PEG ratio of 1.10. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PCAR's PEG compares to its industry's average PEG of 2.14. PCAR's PEG has been as high as 1.32 and as low as 1.04, with a median of 1.16, all within the past year.
Investors should also recognize that PCAR has a P/B ratio of 2.77. 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 solid versus its industry's average P/B of 3.33. Over the past 12 months, PCAR's P/B has been as high as 3.02 and as low as 2.20, with a median of 2.54.
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. PCAR has a P/S ratio of 1.29. This compares to its industry's average P/S of 2.58.
Finally, we should also recognize that PCAR has a P/CF ratio of 9.60. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.83. PCAR's P/CF has been as high as 11.01 and as low as 8.57, with a median of 10.15, all within the past year.
These are just a handful of the figures considered in PACCAR's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PCAR is an impressive value stock right now.
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Should Value Investors Buy PACCAR (PCAR) Stock?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 to watch right now is PACCAR (PCAR - Free Report) . PCAR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 11.02 right now. For comparison, its industry sports an average P/E of 28.83. Over the past year, PCAR's Forward P/E has been as high as 13.22 and as low as 10.39, with a median of 11.63.
PCAR is also sporting a PEG ratio of 1.10. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PCAR's PEG compares to its industry's average PEG of 2.14. PCAR's PEG has been as high as 1.32 and as low as 1.04, with a median of 1.16, all within the past year.
Investors should also recognize that PCAR has a P/B ratio of 2.77. 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 solid versus its industry's average P/B of 3.33. Over the past 12 months, PCAR's P/B has been as high as 3.02 and as low as 2.20, with a median of 2.54.
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. PCAR has a P/S ratio of 1.29. This compares to its industry's average P/S of 2.58.
Finally, we should also recognize that PCAR has a P/CF ratio of 9.60. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 16.83. PCAR's P/CF has been as high as 11.01 and as low as 8.57, with a median of 10.15, all within the past year.
These are just a handful of the figures considered in PACCAR's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that PCAR is an impressive value stock right now.