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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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company to watch right now is Ryder (R - Free Report) . R is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 12.17 right now. For comparison, its industry sports an average P/E of 15.02. Over the past 52 weeks, R's Forward P/E has been as high as 19.35 and as low as 11.07, with a median of 12.85.
We also note that R holds a PEG ratio of 0.84. 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. R's PEG compares to its industry's average PEG of 1.40. R's PEG has been as high as 1.29 and as low as 0.74, with a median of 0.87, all within the past year.
Another valuation metric that we should highlight is R's P/B ratio of 1.43. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.66. Over the past 12 months, R's P/B has been as high as 2.13 and as low as 1.23, with a median of 1.45.
Finally, our model also underscores that R has a P/CF ratio of 1.89. 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. R's P/CF compares to its industry's average P/CF of 5.36. Within the past 12 months, R's P/CF has been as high as 3.02 and as low as 1.67, with a median of 1.95.
Value investors will likely look at more than just these metrics, but the above data helps show that Ryder is likely undervalued currently. And when considering the strength of its earnings outlook, R sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Ryder (R) 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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 company to watch right now is Ryder (R - Free Report) . R is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 12.17 right now. For comparison, its industry sports an average P/E of 15.02. Over the past 52 weeks, R's Forward P/E has been as high as 19.35 and as low as 11.07, with a median of 12.85.
We also note that R holds a PEG ratio of 0.84. 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. R's PEG compares to its industry's average PEG of 1.40. R's PEG has been as high as 1.29 and as low as 0.74, with a median of 0.87, all within the past year.
Another valuation metric that we should highlight is R's P/B ratio of 1.43. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.66. Over the past 12 months, R's P/B has been as high as 2.13 and as low as 1.23, with a median of 1.45.
Finally, our model also underscores that R has a P/CF ratio of 1.89. 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. R's P/CF compares to its industry's average P/CF of 5.36. Within the past 12 months, R's P/CF has been as high as 3.02 and as low as 1.67, with a median of 1.95.
Value investors will likely look at more than just these metrics, but the above data helps show that Ryder is likely undervalued currently. And when considering the strength of its earnings outlook, R sticks out at as one of the market's strongest value stocks.