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Is The Greenbrier Companies (GBX) Stock Undervalued Right Now?
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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
The Greenbrier Companies (GBX - Free Report) is a stock many investors are watching right now. GBX is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.81. This compares to its industry's average Forward P/E of 14.68. Over the last 12 months, GBX's Forward P/E has been as high as 13.64 and as low as 6.49, with a median of 10.56.
Investors will also notice that GBX has a PEG ratio of 1.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GBX's PEG compares to its industry's average PEG of 1.94. Over the last 12 months, GBX's PEG has been as high as 2.21 and as low as 0.49, with a median of 0.89.
Another valuation metric that we should highlight is GBX's P/B ratio of 0.93. 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. GBX's current P/B looks attractive when compared to its industry's average P/B of 2.69. Over the past year, GBX's P/B has been as high as 1.41 and as low as 0.77, with a median of 1.03.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GBX has a P/S ratio of 0.43. This compares to its industry's average P/S of 0.91.
Finally, investors should note that GBX has a P/CF ratio of 4.58. 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. GBX's current P/CF looks attractive when compared to its industry's average P/CF of 8.76. Within the past 12 months, GBX's P/CF has been as high as 7.93 and as low as 4.07, with a median of 5.93.
These are just a handful of the figures considered in The Greenbrier Companies'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 GBX is an impressive value stock right now.
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Is The Greenbrier Companies (GBX) Stock Undervalued Right Now?
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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
The Greenbrier Companies (GBX - Free Report) is a stock many investors are watching right now. GBX is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 8.81. This compares to its industry's average Forward P/E of 14.68. Over the last 12 months, GBX's Forward P/E has been as high as 13.64 and as low as 6.49, with a median of 10.56.
Investors will also notice that GBX has a PEG ratio of 1.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GBX's PEG compares to its industry's average PEG of 1.94. Over the last 12 months, GBX's PEG has been as high as 2.21 and as low as 0.49, with a median of 0.89.
Another valuation metric that we should highlight is GBX's P/B ratio of 0.93. 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. GBX's current P/B looks attractive when compared to its industry's average P/B of 2.69. Over the past year, GBX's P/B has been as high as 1.41 and as low as 0.77, with a median of 1.03.
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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GBX has a P/S ratio of 0.43. This compares to its industry's average P/S of 0.91.
Finally, investors should note that GBX has a P/CF ratio of 4.58. 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. GBX's current P/CF looks attractive when compared to its industry's average P/CF of 8.76. Within the past 12 months, GBX's P/CF has been as high as 7.93 and as low as 4.07, with a median of 5.93.
These are just a handful of the figures considered in The Greenbrier Companies'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 GBX is an impressive value stock right now.