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Should Value Investors Buy These Retail-Wholesale Stocks?
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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.
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 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 company to watch right now is Asbury Automotive Group (ABG - Free Report) . ABG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 5.79, while its industry has an average P/E of 6.59. Over the last 12 months, ABG's Forward P/E has been as high as 174.50 and as low as 5.39, with a median of 9.88.
Investors should also note that ABG holds a PEG ratio of 0.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ABG's industry currently sports an average PEG of 0.34. Within the past year, ABG's PEG has been as high as 9.42 and as low as 0.29, with a median of 0.53.
Finally, investors should note that ABG has a P/CF ratio of 6.03. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 9.98. Over the past 52 weeks, ABG's P/CF has been as high as 12.40 and as low as 5.63, with a median of 7.77.
Investors could also keep in mind Lithia Motors (LAD - Free Report) , an Automotive - Retail and Whole Sales stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Lithia Motors is currently trading with a Forward P/E ratio of 8.25 while its PEG ratio sits at 0.39. Both of the company's metrics compare favorably to its industry's average P/E of 6.59 and average PEG ratio of 0.34.
LAD's Forward P/E has been as high as 19.87 and as low as 7.58, with a median of 13.07. During the same time period, its PEG ratio has been as high as 0.89, as low as 0.36, with a median of 0.50.
Furthermore, Lithia Motors holds a P/B ratio of 2.04 and its industry's price-to-book ratio is 2.39. LAD's P/B has been as high as 4.12, as low as 1.86, with a median of 2.60 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Asbury Automotive Group and Lithia Motors are likely undervalued currently. And when considering the strength of its earnings outlook, ABG and LAD sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy These Retail-Wholesale Stocks?
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.
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 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 company to watch right now is Asbury Automotive Group (ABG - Free Report) . ABG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 5.79, while its industry has an average P/E of 6.59. Over the last 12 months, ABG's Forward P/E has been as high as 174.50 and as low as 5.39, with a median of 9.88.
Investors should also note that ABG holds a PEG ratio of 0.31. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. ABG's industry currently sports an average PEG of 0.34. Within the past year, ABG's PEG has been as high as 9.42 and as low as 0.29, with a median of 0.53.
Finally, investors should note that ABG has a P/CF ratio of 6.03. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 9.98. Over the past 52 weeks, ABG's P/CF has been as high as 12.40 and as low as 5.63, with a median of 7.77.
Investors could also keep in mind Lithia Motors (LAD - Free Report) , an Automotive - Retail and Whole Sales stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Lithia Motors is currently trading with a Forward P/E ratio of 8.25 while its PEG ratio sits at 0.39. Both of the company's metrics compare favorably to its industry's average P/E of 6.59 and average PEG ratio of 0.34.
LAD's Forward P/E has been as high as 19.87 and as low as 7.58, with a median of 13.07. During the same time period, its PEG ratio has been as high as 0.89, as low as 0.36, with a median of 0.50.
Furthermore, Lithia Motors holds a P/B ratio of 2.04 and its industry's price-to-book ratio is 2.39. LAD's P/B has been as high as 4.12, as low as 1.86, with a median of 2.60 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Asbury Automotive Group and Lithia Motors are likely undervalued currently. And when considering the strength of its earnings outlook, ABG and LAD sticks out as one of the market's strongest value stocks.