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Is Custom Truck One Source (CTOS) Stock Undervalued Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Custom Truck One Source (CTOS - Free Report) . CTOS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
CTOS is also sporting a PEG ratio of 0.42. 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. CTOS's PEG compares to its industry's average PEG of 1.08. Within the past year, CTOS's PEG has been as high as 0.64 and as low as 0.42, with a median of 0.57.
Another notable valuation metric for CTOS is its P/B ratio of 1.69. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.72. Within the past 52 weeks, CTOS's P/B has been as high as 2.10 and as low as 1.29, with a median of 1.80.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CTOS has a P/S ratio of 0.83. This compares to its industry's average P/S of 0.87.
Driven Brands Holdings (DRVN - Free Report) may be another strong Automotive - Original Equipment stock to add to your shortlist. DRVN is a # 2 (Buy) stock with a Value grade of A.
Driven Brands Holdings is trading at a forward earnings multiple of 15.36 at the moment, with a PEG ratio of 1.26. This compares to its industry's average P/E of 22.70 and average PEG ratio of 1.08.
DRVN's price-to-earnings ratio has been as high as 24.14 and as low as 10.21, with a median of 19.45, while its PEG ratio has been as high as 3.55 and as low as 0.94, with a median of 1.54, all within the past year.
Additionally, Driven Brands Holdings has a P/B ratio of 2.71 while its industry's price-to-book ratio sits at 2.72. For DRVN, this valuation metric has been as high as 3.08, as low as 1.19, with a median of 2.59 over the past year.
These are just a handful of the figures considered in Custom Truck One Source and Driven Brands Holdings'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 CTOS and DRVN is an impressive value stock right now.
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Is Custom Truck One Source (CTOS) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Custom Truck One Source (CTOS - Free Report) . CTOS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
CTOS is also sporting a PEG ratio of 0.42. 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. CTOS's PEG compares to its industry's average PEG of 1.08. Within the past year, CTOS's PEG has been as high as 0.64 and as low as 0.42, with a median of 0.57.
Another notable valuation metric for CTOS is its P/B ratio of 1.69. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.72. Within the past 52 weeks, CTOS's P/B has been as high as 2.10 and as low as 1.29, with a median of 1.80.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CTOS has a P/S ratio of 0.83. This compares to its industry's average P/S of 0.87.
Driven Brands Holdings (DRVN - Free Report) may be another strong Automotive - Original Equipment stock to add to your shortlist. DRVN is a # 2 (Buy) stock with a Value grade of A.
Driven Brands Holdings is trading at a forward earnings multiple of 15.36 at the moment, with a PEG ratio of 1.26. This compares to its industry's average P/E of 22.70 and average PEG ratio of 1.08.
DRVN's price-to-earnings ratio has been as high as 24.14 and as low as 10.21, with a median of 19.45, while its PEG ratio has been as high as 3.55 and as low as 0.94, with a median of 1.54, all within the past year.
Additionally, Driven Brands Holdings has a P/B ratio of 2.71 while its industry's price-to-book ratio sits at 2.72. For DRVN, this valuation metric has been as high as 3.08, as low as 1.19, with a median of 2.59 over the past year.
These are just a handful of the figures considered in Custom Truck One Source and Driven Brands Holdings'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 CTOS and DRVN is an impressive value stock right now.