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Is Ryder System (R) a Great Value Stock 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 value investors might notice is Ryder System (R - Free Report) . R is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.18, which compares to its industry's average of 14.43. Over the past year, R's Forward P/E has been as high as 10.32 and as low as 6.68, with a median of 8.77.
Investors should also recognize that R has a P/B ratio of 1.65. 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 1.68. R's P/B has been as high as 1.75 and as low as 1.20, with a median of 1.49, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. R has a P/S ratio of 0.43. This compares to its industry's average P/S of 0.77.
Finally, investors should note that R has a P/CF ratio of 2.35. 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 8.44. Over the past year, R's P/CF has been as high as 2.48 and as low as 1.38, with a median of 2.01.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ryder System is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, R feels like a great value stock at the moment.
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Is Ryder System (R) a Great Value Stock Right Now?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 value investors might notice is Ryder System (R - Free Report) . R is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 9.18, which compares to its industry's average of 14.43. Over the past year, R's Forward P/E has been as high as 10.32 and as low as 6.68, with a median of 8.77.
Investors should also recognize that R has a P/B ratio of 1.65. 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 1.68. R's P/B has been as high as 1.75 and as low as 1.20, with a median of 1.49, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. R has a P/S ratio of 0.43. This compares to its industry's average P/S of 0.77.
Finally, investors should note that R has a P/CF ratio of 2.35. 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 8.44. Over the past year, R's P/CF has been as high as 2.48 and as low as 1.38, with a median of 2.01.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ryder System is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, R feels like a great value stock at the moment.