While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now is Textainer Group . TGH is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 6.19, while its industry has an average P/E of 10.30. Over the last 12 months, TGH's Forward P/E has been as high as 12.10 and as low as 6.07, with a median of 8.09.
We should also highlight that TGH has a P/B ratio of 0.42. 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. This stock's P/B looks solid versus its industry's average P/B of 1.03. Over the past 12 months, TGH's P/B has been as high as 0.82 and as low as 0.42, with a median of 0.55.
Value investors also use the P/S ratio. The P/S ratio is 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. TGH has a P/S ratio of 0.92. This compares to its industry's average P/S of 0.98.
Finally, our model also underscores that TGH has a P/CF ratio of 1.77. 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. TGH's P/CF compares to its industry's average P/CF of 5.54. TGH's P/CF has been as high as 3.43 and as low as 1.77, with a median of 2.31, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Textainer Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TGH feels like a great value stock at the moment.
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Is Textainer Group (TGH) a Great Value Stock Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now is Textainer Group . TGH is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 6.19, while its industry has an average P/E of 10.30. Over the last 12 months, TGH's Forward P/E has been as high as 12.10 and as low as 6.07, with a median of 8.09.
We should also highlight that TGH has a P/B ratio of 0.42. 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. This stock's P/B looks solid versus its industry's average P/B of 1.03. Over the past 12 months, TGH's P/B has been as high as 0.82 and as low as 0.42, with a median of 0.55.
Value investors also use the P/S ratio. The P/S ratio is 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. TGH has a P/S ratio of 0.92. This compares to its industry's average P/S of 0.98.
Finally, our model also underscores that TGH has a P/CF ratio of 1.77. 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. TGH's P/CF compares to its industry's average P/CF of 5.54. TGH's P/CF has been as high as 3.43 and as low as 1.77, with a median of 2.31, all within the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Textainer Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TGH feels like a great value stock at the moment.