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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Textainer Group . TGH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.93, which compares to its industry's average of 12.23. Over the last 12 months, TGH's Forward P/E has been as high as 8.80 and as low as 4.72, with a median of 7.10.
Another valuation metric that we should highlight is TGH's P/B ratio of 1. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.44. Within the past 52 weeks, 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 3.04. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.89. Over the past 52 weeks, TGH's P/CF has been as high as 3.26 and as low as 2, 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 currently trading with a Forward P/E ratio of 8.66 while its PEG ratio sits at 0.88. Both of the company's metrics compare favorably to its industry's average P/E of 12.23 and average PEG ratio of 1.05.
TRTN's price-to-earnings ratio has been as high as 9.11 and as low as 5, with a median of 7.02, while its PEG ratio has been as high as 0.88 and as low as 0.50, with a median of 0.66, all within the past year.
Furthermore, Triton holds a P/B ratio of 1.81 and its industry's price-to-book ratio is 1.44. TRTN's P/B has been as high as 1.90, as low as 1.26, with a median of 1.66 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Textainer Group and Triton are likely undervalued currently. And when considering the strength of its earnings outlook, TGH and TRTN sticks out as one of the market's strongest value stocks.
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Is Textainer Group (TGH) Stock Undervalued Right Now?
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Textainer Group . TGH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7.93, which compares to its industry's average of 12.23. Over the last 12 months, TGH's Forward P/E has been as high as 8.80 and as low as 4.72, with a median of 7.10.
Another valuation metric that we should highlight is TGH's P/B ratio of 1. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.44. Within the past 52 weeks, 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 3.04. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.89. Over the past 52 weeks, TGH's P/CF has been as high as 3.26 and as low as 2, 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 currently trading with a Forward P/E ratio of 8.66 while its PEG ratio sits at 0.88. Both of the company's metrics compare favorably to its industry's average P/E of 12.23 and average PEG ratio of 1.05.
TRTN's price-to-earnings ratio has been as high as 9.11 and as low as 5, with a median of 7.02, while its PEG ratio has been as high as 0.88 and as low as 0.50, with a median of 0.66, all within the past year.
Furthermore, Triton holds a P/B ratio of 1.81 and its industry's price-to-book ratio is 1.44. TRTN's P/B has been as high as 1.90, as low as 1.26, with a median of 1.66 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Textainer Group and Triton are likely undervalued currently. And when considering the strength of its earnings outlook, TGH and TRTN sticks out as one of the market's strongest value stocks.