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Should Value Investors Buy Ryder System (R) Stock?

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 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.

Ryder System (R) is a stock many investors are watching right now. R is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 5.48, while its industry has an average P/E of 10.45. Over the last 12 months, R's Forward P/E has been as high as 11.35 and as low as 5.48, with a median of 6.97.

Another notable valuation metric for R is its P/B ratio of 1.21. 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 1.34. Within the past 52 weeks, R's P/B has been as high as 1.95 and as low as 1.21, with a median of 1.50.

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

Triton is currently trading with a Forward P/E ratio of 5.15 while its PEG ratio sits at 0.51. Both of the company's metrics compare favorably to its industry's average P/E of 10.45 and average PEG ratio of 0.75.

Over the last 12 months, TRTN's P/E has been as high as 7.52, as low as 4.68, with a median of 6.13, and its PEG ratio has been as high as 0.75, as low as 0.47, with a median of 0.61.

Additionally, Triton has a P/B ratio of 1.36 while its industry's price-to-book ratio sits at 1.34. For TRTN, this valuation metric has been as high as 2.05, as low as 1.25, with a median of 1.65 over the past year.

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


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Ryder System, Inc. (R): Free Stock Analysis Report
 
Triton International Limited (TRTN): Free Stock Analysis Report
 
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