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Is Covenant Logistics Group (CVLG) a Great Value Stock Right Now?

·3 min read

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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Covenant Logistics Group (CVLG) is a stock many investors are watching right now. CVLG is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 6.85 right now. For comparison, its industry sports an average P/E of 14.94. CVLG's Forward P/E has been as high as 9.80 and as low as 4.97, with a median of 6.46, all within the past year.

We should also highlight that CVLG has a P/B ratio of 1.16. 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 solid versus its industry's average P/B of 3.28. Over the past year, CVLG's P/B has been as high as 1.75 and as low as 0.81, with a median of 1.11.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CVLG has a P/S ratio of 0.36. This compares to its industry's average P/S of 1.02.

Finally, investors should note that CVLG has a P/CF ratio of 3.45. 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 10.79. Over the past 52 weeks, CVLG's P/CF has been as high as 11.15 and as low as 2.42, with a median of 5.12.

P.A.M. Transportation Services (PTSI) may be another strong Transportation - Truck stock to add to your shortlist. PTSI is a # 2 (Buy) stock with a Value grade of A.

Furthermore, P.A.M. Transportation Services holds a P/B ratio of 2.77 and its industry's price-to-book ratio is 3.28. PTSI's P/B has been as high as 4.70, as low as 1.69, with a median of 2.88 over the past 12 months.

These are only a few of the key metrics included in Covenant Logistics Group and P.A.M. Transportation Services strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CVLG and PTSI look like an impressive value stock at the moment.


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Covenant Logistics Group, Inc. (CVLG) : Free Stock Analysis Report
 
P.A.M. Transportation Services, Inc. (PTSI) : Free Stock Analysis Report
 
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