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Are Investors Undervaluing Ryder System (R) 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.

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.

Ryder System (R) is a stock many investors are watching right now. R is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.32, while its industry has an average P/E of 13.35. Over the past year, R's Forward P/E has been as high as 14.59 and as low as 5.53, with a median of 9.74.

Another notable valuation metric for R is its P/B ratio of 1.51. 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 1.52. R's P/B has been as high as 1.99 and as low as 1.22, with a median of 1.68, over the past year.

If you're looking for another solid Transportation - Equipment and Leasing value stock, take a look at Textainer Group (TGH). TGH is a # 2 (Buy) stock with a Value score of A.

Textainer Group also has a P/B ratio of 1.01 compared to its industry's price-to-book ratio of 1.52. Over the past year, its P/B ratio has been as high as 1.40, as low as 0.96, with a median of 1.22.

Value investors will likely look at more than just these metrics, but the above data helps show that Ryder System and Textainer Group are likely undervalued currently. And when considering the strength of its earnings outlook, R and TGH sticks out as one of the market's strongest value stocks.

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Ryder System, Inc. (R) : Free Stock Analysis Report
Textainer Group Holdings Limited (TGH) : Free Stock Analysis Report
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