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Is Ryder System (R) Stock Undervalued 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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Ryder System (R - Free Report) . R is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.46. This compares to its industry's average Forward P/E of 12.43. Over the past year, R's Forward P/E has been as high as 9.20 and as low as 5.14, with a median of 7.34.

Finally, we should also recognize that R has a P/CF ratio of 1.93. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.97. R's P/CF has been as high as 1.97 and as low as 1.33, with a median of 1.59, all within the past year.

Investors could also keep in mind Textainer Group , an Transportation - Equipment and Leasing stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Textainer Group also has a P/B ratio of 1.06 compared to its industry's price-to-book ratio of 1.46. Over the past year, its P/B ratio has been as high as 1.07, as low as 0.78, with a median of 0.89.

These are only a few of the key metrics included in Ryder System and Textainer Group strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, R and TGH look like an impressive value stock at the moment.


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