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Should Value Investors Buy These Transportation Stocks?
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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.
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 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.
Deutsche Post is a stock many investors are watching right now. DPSGY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.43. This compares to its industry's average Forward P/E of 13.48. Over the past 52 weeks, DPSGY's Forward P/E has been as high as 16.76 and as low as 11.96, with a median of 14.89.
Another notable valuation metric for DPSGY is its P/B ratio of 3.64. 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 4.13. Over the past year, DPSGY's P/B has been as high as 4.50 and as low as 3.29, with a median of 3.93.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DPSGY has a P/S ratio of 0.81. This compares to its industry's average P/S of 1.26.
Finally, investors should note that DPSGY has a P/CF ratio of 7.51. 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. DPSGY's current P/CF looks attractive when compared to its industry's average P/CF of 28.96. DPSGY's P/CF has been as high as 10 and as low as 7.22, with a median of 8.40, all within the past year.
If you're looking for another solid Transportation - Services value stock, take a look at Matson (MATX - Free Report) . MATX is a # 1 (Strong Buy) stock with a Value score of A.
Matson also has a P/B ratio of 2.58 compared to its industry's price-to-book ratio of 4.13. Over the past year, its P/B ratio has been as high as 3.47, as low as 2.31, with a median of 2.77.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Deutsche Post and Matson are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DPSGY and MATX feels like a great value stock at the moment.
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Should Value Investors Buy These Transportation Stocks?
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.
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 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.
Deutsche Post is a stock many investors are watching right now. DPSGY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.43. This compares to its industry's average Forward P/E of 13.48. Over the past 52 weeks, DPSGY's Forward P/E has been as high as 16.76 and as low as 11.96, with a median of 14.89.
Another notable valuation metric for DPSGY is its P/B ratio of 3.64. 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 4.13. Over the past year, DPSGY's P/B has been as high as 4.50 and as low as 3.29, with a median of 3.93.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DPSGY has a P/S ratio of 0.81. This compares to its industry's average P/S of 1.26.
Finally, investors should note that DPSGY has a P/CF ratio of 7.51. 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. DPSGY's current P/CF looks attractive when compared to its industry's average P/CF of 28.96. DPSGY's P/CF has been as high as 10 and as low as 7.22, with a median of 8.40, all within the past year.
If you're looking for another solid Transportation - Services value stock, take a look at Matson (MATX - Free Report) . MATX is a # 1 (Strong Buy) stock with a Value score of A.
Matson also has a P/B ratio of 2.58 compared to its industry's price-to-book ratio of 4.13. Over the past year, its P/B ratio has been as high as 3.47, as low as 2.31, with a median of 2.77.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Deutsche Post and Matson are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DPSGY and MATX feels like a great value stock at the moment.