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Is Textainer Group (TGH) Stock Undervalued 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.

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 Textainer Group . TGH is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 6.84. This compares to its industry's average Forward P/E of 16.07. TGH's Forward P/E has been as high as 10.75 and as low as 5.51, with a median of 7.27, all within the past year.

We should also highlight that TGH has a P/B ratio of 1.23. 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 1.49. Over the past year, TGH's P/B has been as high as 1.34 and as low as 0.35, with a median of 0.84.

Finally, we should also recognize that TGH has a P/CF ratio of 3.91. 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. This stock's P/CF looks attractive against its industry's average P/CF of 9.18. Within the past 12 months, TGH's P/CF has been as high as 4.27 and as low as 1.25, with a median of 2.92.

Value investors will likely look at more than just these metrics, but the above data helps show that Textainer Group is likely undervalued currently. And when considering the strength of its earnings outlook, TGH sticks out at as one of the market's strongest value stocks.

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