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Is Werner Enterprises (WERN) Stock Undervalued 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 value investors might notice is Werner Enterprises (WERN - Free Report) . WERN is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 13.14. This compares to its industry's average Forward P/E of 15.25. WERN's Forward P/E has been as high as 31.51 and as low as 12.39, with a median of 17.75, all within the past year.

Another valuation metric that we should highlight is WERN's P/B ratio of 1.92. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.48. Over the past year, WERN's P/B has been as high as 2.73 and as low as 1.81, with a median of 2.26.

Finally, investors will want to recognize that WERN has a P/CF ratio of 4.99. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 8.92. Within the past 12 months, WERN's P/CF has been as high as 9.50 and as low as 4.70, with a median of 6.31.

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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