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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Textainer Group . TGH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.19 right now. For comparison, its industry sports an average P/E of 12.03. TGH's Forward P/E has been as high as 8.80 and as low as 4.72, with a median of 6.92, all within the past year.
Investors should also recognize that TGH has a P/B ratio of 1.02. 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. TGH's current P/B looks attractive when compared to its industry's average P/B of 1.41. Over the past year, TGH's P/B has been as high as 1.07 and as low as 0.78, with a median of 0.89.
Finally, our model also underscores that TGH has a P/CF ratio of 3.12. 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 stock's P/CF looks attractive against its industry's average P/CF of 6.76. Over the past 52 weeks, TGH's P/CF has been as high as 3.26 and as low as 2.02, with a median of 2.43.
Investors could also keep in mind Triton , an Transportation - Equipment and Leasing stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Triton is trading at a forward earnings multiple of 8.63 at the moment, with a PEG ratio of 0.88. This compares to its industry's average P/E of 12.03 and average PEG ratio of 0.93.
Over the last 12 months, TRTN's P/E has been as high as 9.11, as low as 5, with a median of 6.91, and its PEG ratio has been as high as 0.88, as low as 0.50, with a median of 0.65.
Triton sports a P/B ratio of 1.80 as well; this compares to its industry's price-to-book ratio of 1.41. In the past 52 weeks, TRTN's P/B has been as high as 1.90, as low as 1.26, with a median of 1.62.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Textainer Group and Triton are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TGH and TRTN feels like a great value stock at the moment.
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Should Value Investors Buy Textainer Group (TGH) Stock?
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Textainer Group . TGH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 8.19 right now. For comparison, its industry sports an average P/E of 12.03. TGH's Forward P/E has been as high as 8.80 and as low as 4.72, with a median of 6.92, all within the past year.
Investors should also recognize that TGH has a P/B ratio of 1.02. 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. TGH's current P/B looks attractive when compared to its industry's average P/B of 1.41. Over the past year, TGH's P/B has been as high as 1.07 and as low as 0.78, with a median of 0.89.
Finally, our model also underscores that TGH has a P/CF ratio of 3.12. 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 stock's P/CF looks attractive against its industry's average P/CF of 6.76. Over the past 52 weeks, TGH's P/CF has been as high as 3.26 and as low as 2.02, with a median of 2.43.
Investors could also keep in mind Triton , an Transportation - Equipment and Leasing stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Triton is trading at a forward earnings multiple of 8.63 at the moment, with a PEG ratio of 0.88. This compares to its industry's average P/E of 12.03 and average PEG ratio of 0.93.
Over the last 12 months, TRTN's P/E has been as high as 9.11, as low as 5, with a median of 6.91, and its PEG ratio has been as high as 0.88, as low as 0.50, with a median of 0.65.
Triton sports a P/B ratio of 1.80 as well; this compares to its industry's price-to-book ratio of 1.41. In the past 52 weeks, TRTN's P/B has been as high as 1.90, as low as 1.26, with a median of 1.62.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Textainer Group and Triton are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TGH and TRTN feels like a great value stock at the moment.