U.S. markets open in 1 hour 54 minutes
  • S&P Futures

    +25.00 (+0.56%)
  • Dow Futures

    +199.00 (+0.57%)
  • Nasdaq Futures

    +68.25 (+0.45%)
  • Russell 2000 Futures

    +19.80 (+0.87%)
  • Crude Oil

    +1.06 (+1.29%)
  • Gold

    +12.30 (+0.70%)
  • Silver

    +0.51 (+2.18%)

    +0.0041 (+0.35%)
  • 10-Yr Bond

    0.0000 (0.00%)
  • Vix

    -0.29 (-1.78%)

    +0.0099 (+0.72%)

    -0.1140 (-0.10%)

    +875.32 (+1.43%)
  • CMC Crypto 200

    +2.17 (+0.15%)
  • FTSE 100

    +4.89 (+0.07%)
  • Nikkei 225

    +190.06 (+0.65%)

Are Investors Undervaluing CAI International (CAI) Right Now?

  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

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

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

CAI International (CAI) is a stock many investors are watching right now. CAI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 5.12 right now. For comparison, its industry sports an average P/E of 14.64. Over the past 52 weeks, CAI's Forward P/E has been as high as 12.38 and as low as 5.05, with a median of 6.52.

We should also highlight that CAI has a P/B ratio of 1.17. The P/B is a method of comparing a stock's market value to 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 1.47. Over the past year, CAI's P/B has been as high as 1.44 and as low as 0.47, with a median of 0.90.

Finally, investors will want to recognize that CAI has a P/CF ratio of 3.96. 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. CAI's current P/CF looks attractive when compared to its industry's average P/CF of 9.51. CAI's P/CF has been as high as 5.92 and as low as 2.19, with a median of 3.74, all within the past year.

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.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
CAI International, Inc. (CAI) : Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research