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Are Investors Undervaluing Custom Truck One Source (CTOS) Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 stock to keep an eye on is Custom Truck One Source (CTOS - Free Report) . CTOS is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.
Another valuation metric that we should highlight is CTOS's P/B ratio of 1.66. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CTOS's current P/B looks attractive when compared to its industry's average P/B of 3.36. Over the past year, CTOS's P/B has been as high as 1.77 and as low as 0.87, with a median of 1.32.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CTOS has a P/S ratio of 0.73. This compares to its industry's average P/S of 0.76.
Investors could also keep in mind Continental (CTTAY - Free Report) , another Automotive - Original Equipment stock with a Zacks Rank of #2 (Buy) and Value grade of A.
Continental is currently trading with a Forward P/E ratio of 9.29 while its PEG ratio sits at 0.69. Both of the company's metrics compare favorably to its industry's average P/E of 18.67 and average PEG ratio of 0.90.
Over the past year, CTTAY's P/E has been as high as 10.00, as low as 6.50, with a median of 8.06; its PEG ratio has been as high as 0.72, as low as 0.25, with a median of 0.36 during the same time period.
Continental sports a P/B ratio of 2.82 as well; this compares to its industry's price-to-book ratio of 3.36. In the past 52 weeks, CTTAY's P/B has been as high as 2.97, as low as 0.76, with a median of 0.91.
These are just a handful of the figures considered in Custom Truck One Source and Continental'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 CTTAY is an impressive value stock right now.
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Are Investors Undervaluing Custom Truck One Source (CTOS) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 stock to keep an eye on is Custom Truck One Source (CTOS - Free Report) . CTOS is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.
Another valuation metric that we should highlight is CTOS's P/B ratio of 1.66. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CTOS's current P/B looks attractive when compared to its industry's average P/B of 3.36. Over the past year, CTOS's P/B has been as high as 1.77 and as low as 0.87, with a median of 1.32.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CTOS has a P/S ratio of 0.73. This compares to its industry's average P/S of 0.76.
Investors could also keep in mind Continental (CTTAY - Free Report) , another Automotive - Original Equipment stock with a Zacks Rank of #2 (Buy) and Value grade of A.
Continental is currently trading with a Forward P/E ratio of 9.29 while its PEG ratio sits at 0.69. Both of the company's metrics compare favorably to its industry's average P/E of 18.67 and average PEG ratio of 0.90.
Over the past year, CTTAY's P/E has been as high as 10.00, as low as 6.50, with a median of 8.06; its PEG ratio has been as high as 0.72, as low as 0.25, with a median of 0.36 during the same time period.
Continental sports a P/B ratio of 2.82 as well; this compares to its industry's price-to-book ratio of 3.36. In the past 52 weeks, CTTAY's P/B has been as high as 2.97, as low as 0.76, with a median of 0.91.
These are just a handful of the figures considered in Custom Truck One Source and Continental'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 CTTAY is an impressive value stock right now.