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Is Ryder (R) a Great Value Stock Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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 value investors might notice is Ryder (R - Free Report) . R is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.55, which compares to its industry's average of 13.51. Over the last 12 months, R's Forward P/E has been as high as 19.35 and as low as 10.55, with a median of 12.60.

Investors will also notice that R has a PEG ratio of 0.84. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. R's PEG compares to its industry's average PEG of 1.33. Over the past 52 weeks, R's PEG has been as high as 1.29 and as low as 0.74, with a median of 0.85.

Investors should also recognize that R has a P/B ratio of 1.25. The P/B ratio pits a stock's market value against 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 1.51. R's P/B has been as high as 2.07 and as low as 1.23, with a median of 1.43, over the past year.

Finally, we should also recognize that R has a P/CF ratio of 1.66. 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 4.86. Over the past year, R's P/CF has been as high as 3.02 and as low as 1.66, with a median of 1.92.

These are only a few of the key metrics included in Ryder's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, R looks like an impressive value stock at the moment.


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