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Should Value Investors Buy Matson (MATX) Stock?

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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 Matson (MATX - Free Report) . MATX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 4.77. This compares to its industry's average Forward P/E of 11.34. MATX's Forward P/E has been as high as 11.45 and as low as 3.37, with a median of 6.96, all within the past year.

Investors should also recognize that MATX has a P/B ratio of 1.94. 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. MATX's current P/B looks attractive when compared to its industry's average P/B of 3.31. Within the past 52 weeks, MATX's P/B has been as high as 3.21 and as low as 1.47, with a median of 2.54.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. MATX has a P/S ratio of 0.71. This compares to its industry's average P/S of 0.76.

Another great Transportation - Services stock you could consider is Universal Logistics (ULH - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.

Additionally, Universal Logistics has a P/B ratio of 2.70 while its industry's price-to-book ratio sits at 3.31. For ULH, this valuation metric has been as high as 2.70, as low as 1.43, with a median of 1.90 over the past year.

These are just a handful of the figures considered in Matson and Universal Logistics's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that MATX and ULH is an impressive value stock right now.


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