Should Value Investors Buy These Transportation Stocks?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company value investors might notice is Ryder System (R). R is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 7.48. This compares to its industry's average Forward P/E of 12.21. R's Forward P/E has been as high as 16.76 and as low as 6.73, with a median of 10.40, all within the past year.
Another valuation metric that we should highlight is R's P/B ratio of 1.62. 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 attractive against its industry's average P/B of 1.71. Over the past 12 months, R's P/B has been as high as 2.06 and as low as 1.36, with a median of 1.75.
Investors could also keep in mind Triton (TRTN), an Transportation - Equipment and Leasing stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Triton currently holds a Forward P/E ratio of 6.53, and its PEG ratio is 0.65. In comparison, its industry sports average P/E and PEG ratios of 12.21 and 1.02.
Over the last 12 months, TRTN's P/E has been as high as 7.97, as low as 5.82, with a median of 6.40, and its PEG ratio has been as high as 0.80, as low as 0.58, with a median of 0.64.
Triton also has a P/B ratio of 1.98 compared to its industry's price-to-book ratio of 1.71. Over the past year, its P/B ratio has been as high as 1.98, as low as 1.46, with a median of 1.70.
These are just a handful of the figures considered in Ryder System and Triton's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that R and TRTN is an impressive value stock right now.
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Ryder System, Inc. (R) : Free Stock Analysis Report
Triton International Limited (TRTN) : Free Stock Analysis Report
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