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Are Investors Undervaluing CAI International (CAI) 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.

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.

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 stock to keep an eye on is CAI International . CAI is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 5.58. This compares to its industry's average Forward P/E of 11.52. Over the last 12 months, CAI's Forward P/E has been as high as 11.22 and as low as 4.95, with a median of 6.

CAI is also sporting a PEG ratio of 0.70. 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. CAI's industry has an average PEG of 1.13 right now. Over the past 52 weeks, CAI's PEG has been as high as 1.40 and as low as 0.62, with a median of 0.75.

Another valuation metric that we should highlight is CAI's P/B ratio of 0.75. The P/B ratio pits a stock's market value against 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 1.33. Within the past 52 weeks, CAI's P/B has been as high as 1.39 and as low as 0.65, with a median of 0.82.

Finally, our model also underscores that CAI has a P/CF ratio of 2.05. 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. This stock's P/CF looks attractive against its industry's average P/CF of 4.27. Over the past year, CAI's P/CF has been as high as 4.63 and as low as 1.76, with a median of 2.36.

These are only a few of the key metrics included in CAI 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, CAI looks like an impressive value stock at the moment.

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