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Are Investors Undervaluing Triton International (TRTN) 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Triton International . TRTN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.01 right now. For comparison, its industry sports an average P/E of 15.10. Over the past 52 weeks, TRTN's Forward P/E has been as high as 14.20 and as low as 6.57, with a median of 8.20.

Investors should also note that TRTN holds a PEG ratio of 0.80. 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. TRTN's industry currently sports an average PEG of 1.41. Over the past 52 weeks, TRTN's PEG has been as high as 2.55 and as low as 0.66, with a median of 0.82.

Another valuation metric that we should highlight is TRTN's P/B ratio of 1.28. 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. This stock's P/B looks solid versus its industry's average P/B of 1.67. Over the past year, TRTN's P/B has been as high as 1.70 and as low as 1.03, with a median of 1.28.

Finally, investors will want to recognize that TRTN has a P/CF ratio of 2.79. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. TRTN's P/CF compares to its industry's average P/CF of 5.38. Over the past year, TRTN's P/CF has been as high as 4.39 and as low as 2.27, with a median of 2.85.

These are only a few of the key metrics included in Triton International's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, TRTN looks like an impressive value stock at the moment.