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Are These Retail-Wholesale Stocks a Great Value Stocks 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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
AutoNation (AN - Free Report) is a stock many investors are watching right now. AN is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 5.91, which compares to its industry's average of 5.99. AN's Forward P/E has been as high as 29.04 and as low as 5.84, with a median of 8.89, all within the past year.
AN is also sporting a PEG ratio of 0.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AN's industry currently sports an average PEG of 0.34. Within the past year, AN's PEG has been as high as 1.23 and as low as 0.25, with a median of 0.46.
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. AN has a P/S ratio of 0.26. This compares to its industry's average P/S of 0.42.
Finally, we should also recognize that AN has a P/CF ratio of 4.63. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.69. Within the past 12 months, AN's P/CF has been as high as 9.20 and as low as 4.35, with a median of 7.22.
Another great Automotive - Retail and Whole Sales stock you could consider is Group 1 Automotive (GPI - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Group 1 Automotive is trading at a forward earnings multiple of 5.36 at the moment, with a PEG ratio of 0.44. This compares to its industry's average P/E of 5.99 and average PEG ratio of 0.34.
GPI's Forward P/E has been as high as 9.62 and as low as 4.73, with a median of 6.38. During the same time period, its PEG ratio has been as high as 4.58, as low as 0.39, with a median of 0.51.
Additionally, Group 1 Automotive has a P/B ratio of 1.87 while its industry's price-to-book ratio sits at 2.17. For GPI, this valuation metric has been as high as 2.19, as low as 1.54, with a median of 1.81 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that AutoNation and Group 1 Automotive are likely undervalued currently. And when considering the strength of its earnings outlook, AN and GPI sticks out as one of the market's strongest value stocks.
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Are These Retail-Wholesale Stocks a Great Value Stocks Right Now?
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
AutoNation (AN - Free Report) is a stock many investors are watching right now. AN is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 5.91, which compares to its industry's average of 5.99. AN's Forward P/E has been as high as 29.04 and as low as 5.84, with a median of 8.89, all within the past year.
AN is also sporting a PEG ratio of 0.25. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. AN's industry currently sports an average PEG of 0.34. Within the past year, AN's PEG has been as high as 1.23 and as low as 0.25, with a median of 0.46.
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. AN has a P/S ratio of 0.26. This compares to its industry's average P/S of 0.42.
Finally, we should also recognize that AN has a P/CF ratio of 4.63. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.69. Within the past 12 months, AN's P/CF has been as high as 9.20 and as low as 4.35, with a median of 7.22.
Another great Automotive - Retail and Whole Sales stock you could consider is Group 1 Automotive (GPI - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Group 1 Automotive is trading at a forward earnings multiple of 5.36 at the moment, with a PEG ratio of 0.44. This compares to its industry's average P/E of 5.99 and average PEG ratio of 0.34.
GPI's Forward P/E has been as high as 9.62 and as low as 4.73, with a median of 6.38. During the same time period, its PEG ratio has been as high as 4.58, as low as 0.39, with a median of 0.51.
Additionally, Group 1 Automotive has a P/B ratio of 1.87 while its industry's price-to-book ratio sits at 2.17. For GPI, this valuation metric has been as high as 2.19, as low as 1.54, with a median of 1.81 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that AutoNation and Group 1 Automotive are likely undervalued currently. And when considering the strength of its earnings outlook, AN and GPI sticks out as one of the market's strongest value stocks.