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Is Werner Enterprises (WERN) a Great Value Stock Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Werner Enterprises (WERN - Free Report) . WERN is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 15.21. This compares to its industry's average Forward P/E of 17.16. WERN's Forward P/E has been as high as 31.51 and as low as 15.14, with a median of 19.15, all within the past year.

Another valuation metric that we should highlight is WERN's P/B ratio of 2.20. 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 attractive against its industry's average P/B of 2.70. WERN's P/B has been as high as 2.73 and as low as 2.03, with a median of 2.34, over the past year.

Finally, our model also underscores that WERN has a P/CF ratio of 5.91. 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 10.22. Over the past 52 weeks, WERN's P/CF has been as high as 9.50 and as low as 5.71, with a median of 6.66.

These are just a handful of the figures considered in Werner Enterprises'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 WERN is an impressive value stock right now.


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