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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
CAI International is a stock many investors are watching right now. CAI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 5.71. This compares to its industry's average Forward P/E of 10.97. CAI's Forward P/E has been as high as 8.21 and as low as 4.95, with a median of 5.77, all within the past year.
We also note that CAI holds a PEG ratio of 0.71. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CAI's industry currently sports an average PEG of 1.08. Over the past 52 weeks, CAI's PEG has been as high as 1.03 and as low as 0.62, with a median of 0.72.
We should also highlight that CAI has a P/B ratio of 0.78. The P/B ratio pits a stock's market value against 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 1.26. Over the past year, CAI's P/B has been as high as 1.07 and as low as 0.65, with a median of 0.79.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CAI has a P/S ratio of 1.17. This compares to its industry's average P/S of 1.25.
Finally, we should also recognize that CAI has a P/CF ratio of 2.13. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 4.06. Over the past year, CAI's P/CF has been as high as 3.34 and as low as 1.76, with a median of 2.24.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CAI International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CAI feels like a great value stock at the moment.
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Is CAI International (CAI) a Great Value Stock 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
CAI International is a stock many investors are watching right now. CAI is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 5.71. This compares to its industry's average Forward P/E of 10.97. CAI's Forward P/E has been as high as 8.21 and as low as 4.95, with a median of 5.77, all within the past year.
We also note that CAI holds a PEG ratio of 0.71. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CAI's industry currently sports an average PEG of 1.08. Over the past 52 weeks, CAI's PEG has been as high as 1.03 and as low as 0.62, with a median of 0.72.
We should also highlight that CAI has a P/B ratio of 0.78. The P/B ratio pits a stock's market value against 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 1.26. Over the past year, CAI's P/B has been as high as 1.07 and as low as 0.65, with a median of 0.79.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CAI has a P/S ratio of 1.17. This compares to its industry's average P/S of 1.25.
Finally, we should also recognize that CAI has a P/CF ratio of 2.13. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 4.06. Over the past year, CAI's P/CF has been as high as 3.34 and as low as 1.76, with a median of 2.24.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CAI International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CAI feels like a great value stock at the moment.