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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is PACCAR (PCAR - Free Report) . PCAR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.28, which compares to its industry's average of 28.94. Over the past year, PCAR's Forward P/E has been as high as 18.10 and as low as 10.39, with a median of 11.86.
Investors should also note that PCAR holds a PEG ratio of 1.23. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PCAR's industry has an average PEG of 1.93 right now. Over the last 12 months, PCAR's PEG has been as high as 1.81 and as low as 1.04, with a median of 1.19.
Another notable valuation metric for PCAR is its P/B ratio of 2.76. 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 stock's P/B looks solid versus its industry's average P/B of 4.02. PCAR's P/B has been as high as 2.93 and as low as 2.20, with a median of 2.53, over the past year.
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. PCAR has a P/S ratio of 1.31. This compares to its industry's average P/S of 3.28.
Finally, our model also underscores that PCAR has a P/CF ratio of 10.53. 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. PCAR's current P/CF looks attractive when compared to its industry's average P/CF of 13.80. Over the past 52 weeks, PCAR's P/CF has been as high as 12.21 and as low as 8.61, with a median of 10.55.
These figures are just a handful of the metrics value investors tend to look at, but they help show that PACCAR is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PCAR feels like a great value stock at the moment.
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Should Value Investors Buy PACCAR (PCAR) Stock?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is PACCAR (PCAR - Free Report) . PCAR is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.28, which compares to its industry's average of 28.94. Over the past year, PCAR's Forward P/E has been as high as 18.10 and as low as 10.39, with a median of 11.86.
Investors should also note that PCAR holds a PEG ratio of 1.23. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. PCAR's industry has an average PEG of 1.93 right now. Over the last 12 months, PCAR's PEG has been as high as 1.81 and as low as 1.04, with a median of 1.19.
Another notable valuation metric for PCAR is its P/B ratio of 2.76. 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 stock's P/B looks solid versus its industry's average P/B of 4.02. PCAR's P/B has been as high as 2.93 and as low as 2.20, with a median of 2.53, over the past year.
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. PCAR has a P/S ratio of 1.31. This compares to its industry's average P/S of 3.28.
Finally, our model also underscores that PCAR has a P/CF ratio of 10.53. 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. PCAR's current P/CF looks attractive when compared to its industry's average P/CF of 13.80. Over the past 52 weeks, PCAR's P/CF has been as high as 12.21 and as low as 8.61, with a median of 10.55.
These figures are just a handful of the metrics value investors tend to look at, but they help show that PACCAR is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PCAR feels like a great value stock at the moment.