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Are Investors Undervaluing The Greenbrier Companies (GBX) 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.
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 company to watch right now is The Greenbrier Companies (GBX - Free Report) . GBX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.14. This compares to its industry's average Forward P/E of 13.36. Over the past 52 weeks, GBX's Forward P/E has been as high as 14.50 and as low as 8.99, with a median of 12.16.
Investors will also notice that GBX has a PEG ratio of 0.60. 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. GBX's industry has an average PEG of 1.03 right now. Within the past year, GBX's PEG has been as high as 2.07 and as low as 0.55, with a median of 1.73.
Investors should also recognize that GBX has a P/B ratio of 1.05. 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. GBX's current P/B looks attractive when compared to its industry's average P/B of 1.87. Within the past 52 weeks, GBX's P/B has been as high as 1.18 and as low as 0.71, with a median of 1.01.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GBX has a P/S ratio of 0.43. This compares to its industry's average P/S of 0.95.
Finally, investors should note that GBX has a P/CF ratio of 6.79. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 9.05. Over the past year, GBX's P/CF has been as high as 9.76 and as low as 5.68, with a median of 7.47.
These are just a handful of the figures considered in The Greenbrier Companies'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 GBX is an impressive value stock right now.
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Are Investors Undervaluing The Greenbrier Companies (GBX) 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.
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 company to watch right now is The Greenbrier Companies (GBX - Free Report) . GBX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.14. This compares to its industry's average Forward P/E of 13.36. Over the past 52 weeks, GBX's Forward P/E has been as high as 14.50 and as low as 8.99, with a median of 12.16.
Investors will also notice that GBX has a PEG ratio of 0.60. 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. GBX's industry has an average PEG of 1.03 right now. Within the past year, GBX's PEG has been as high as 2.07 and as low as 0.55, with a median of 1.73.
Investors should also recognize that GBX has a P/B ratio of 1.05. 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. GBX's current P/B looks attractive when compared to its industry's average P/B of 1.87. Within the past 52 weeks, GBX's P/B has been as high as 1.18 and as low as 0.71, with a median of 1.01.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GBX has a P/S ratio of 0.43. This compares to its industry's average P/S of 0.95.
Finally, investors should note that GBX has a P/CF ratio of 6.79. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 9.05. Over the past year, GBX's P/CF has been as high as 9.76 and as low as 5.68, with a median of 7.47.
These are just a handful of the figures considered in The Greenbrier Companies'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 GBX is an impressive value stock right now.