Are Investors Undervaluing The Greenbrier Companies (GBX) 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 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.
One company value investors might notice is The Greenbrier Companies (GBX). GBX 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 8.99 right now. For comparison, its industry sports an average P/E of 11.27. GBX's Forward P/E has been as high as 15.66 and as low as 8.99, with a median of 12.09, all within the past year.
Another notable valuation metric for GBX is its P/B ratio of 0.73. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. GBX's current P/B looks attractive when compared to its industry's average P/B of 1.26. Over the past 12 months, GBX's P/B has been as high as 1.06 and as low as 0.59, with a median of 0.78.
Ryder System (R) may be another strong Transportation - Equipment and Leasing stock to add to your shortlist. R is a # 2 (Buy) stock with a Value grade of A.
Ryder System sports a P/B ratio of 1.37 as well; this compares to its industry's price-to-book ratio of 1.26. In the past 52 weeks, R's P/B has been as high as 1.71, as low as 1.20, with a median of 1.44.
These figures are just a handful of the metrics value investors tend to look at, but they help show that The Greenbrier Companies and Ryder System are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GBX and R feels like a great value stock at the moment.
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Greenbrier Companies, Inc. (The) (GBX) : Free Stock Analysis Report
Ryder System, Inc. (R) : Free Stock Analysis Report
