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Is Ryder (R) 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Ryder (R - Free Report) is a stock many investors are watching right now. R is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.53, while its industry has an average P/E of 14.75. R's Forward P/E has been as high as 19.35 and as low as 11.07, with a median of 12.68, all within the past year.

Investors should also note that R holds a PEG ratio of 0.84. 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. R's industry currently sports an average PEG of 1.45. R's PEG has been as high as 1.29 and as low as 0.74, with a median of 0.86, all within the past year.

Another valuation metric that we should highlight is R's P/B ratio of 1.36. 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. R's current P/B looks attractive when compared to its industry's average P/B of 1.64. Within the past 52 weeks, R's P/B has been as high as 2.13 and as low as 1.23, with a median of 1.44.

Finally, investors will want to recognize that R has a P/CF ratio of 1.81. 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. This stock's P/CF looks attractive against its industry's average P/CF of 5.30. Over the past 52 weeks, R's P/CF has been as high as 3.02 and as low as 1.67, with a median of 1.94.

Value investors will likely look at more than just these metrics, but the above data helps show that Ryder is likely undervalued currently. And when considering the strength of its earnings outlook, R sticks out at as one of the market's strongest value stocks.


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