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Is Greenbrier Companies (GBX) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Greenbrier Companies (GBX - Free Report) is a stock many investors are watching right now. GBX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Another notable valuation metric for GBX is its P/B ratio of 0.61. 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 attractive against its industry's average P/B of 0.92. Over the past year, GBX's P/B has been as high as 0.74 and as low as 0.29, with a median of 0.59.

Finally, investors should note that GBX has a P/CF ratio of 4.71. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 4.93. Over the past year, GBX's P/CF has been as high as 6.52 and as low as 2.33, with a median of 4.80.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Greenbrier Companies is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GBX feels like a great value stock at the moment.


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