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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 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 company to watch right now is PACCAR (PCAR - Free Report) . PCAR is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 13.11, while its industry has an average P/E of 33.20. Over the last 12 months, PCAR's Forward P/E has been as high as 13.37 and as low as 9.44, with a median of 11.61.
We also note that PCAR holds a PEG ratio of 1.67. 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 2.65. Within the past year, PCAR's PEG has been as high as 1.67 and as low as 0.94, with a median of 1.16.
Another notable valuation metric for PCAR is its P/B ratio of 3.48. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. PCAR's current P/B looks attractive when compared to its industry's average P/B of 3.84. PCAR's P/B has been as high as 3.48 and as low as 2.58, with a median of 2.93, over the past year.
Finally, investors should note that PCAR has a P/CF ratio of 10.05. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. PCAR's P/CF compares to its industry's average P/CF of 15.37. Over the past 52 weeks, PCAR's P/CF has been as high as 11.24 and as low as 8.57, with a median of 9.87.
These figures are just a handful of the metrics value investors tend to look at, but they help show that PACCAR is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PCAR feels like a great value stock at the moment.
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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 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 company to watch right now is PACCAR (PCAR - Free Report) . PCAR is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 13.11, while its industry has an average P/E of 33.20. Over the last 12 months, PCAR's Forward P/E has been as high as 13.37 and as low as 9.44, with a median of 11.61.
We also note that PCAR holds a PEG ratio of 1.67. 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 2.65. Within the past year, PCAR's PEG has been as high as 1.67 and as low as 0.94, with a median of 1.16.
Another notable valuation metric for PCAR is its P/B ratio of 3.48. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. PCAR's current P/B looks attractive when compared to its industry's average P/B of 3.84. PCAR's P/B has been as high as 3.48 and as low as 2.58, with a median of 2.93, over the past year.
Finally, investors should note that PCAR has a P/CF ratio of 10.05. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. PCAR's P/CF compares to its industry's average P/CF of 15.37. Over the past 52 weeks, PCAR's P/CF has been as high as 11.24 and as low as 8.57, with a median of 9.87.
These figures are just a handful of the metrics value investors tend to look at, but they help show that PACCAR is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PCAR feels like a great value stock at the moment.