Send me real-time posts from this site at my email

Are Investors Undervaluing These Transportation Stocks Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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.

One company value investors might notice is Textainer Group (TGH). TGH is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 6.53, while its industry has an average P/E of 16.12. Over the past year, TGH's Forward P/E has been as high as 10.75 and as low as 5.51, with a median of 7.06.

We should also highlight that TGH has a 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. TGH's current P/B looks attractive when compared to its industry's average P/B of 1.75. Over the past year, TGH's P/B has been as high as 1.40 and as low as 0.70, with a median of 1.10.

Finally, we should also recognize that TGH has a P/CF ratio of 3.26. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.31. TGH's P/CF has been as high as 4.27 and as low as 2.56, with a median of 3.40, all within the past year.

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.

Triton is trading at a forward earnings multiple of 6.48 at the moment, with a PEG ratio of 0.65. This compares to its industry's average P/E of 16.12 and average PEG ratio of 1.27.

Over the last 12 months, TRTN's P/E has been as high as 9.09, as low as 5.82, with a median of 6.65, and its PEG ratio has been as high as 0.91, as low as 0.58, with a median of 0.66.

Triton also has a P/B ratio of 1.80 compared to its industry's price-to-book ratio of 1.75. Over the past year, its P/B ratio has been as high as 2.08, as low as 1.46, with a median of 1.66.

These are only a few of the key metrics included in Textainer Group and Triton strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, TGH and TRTN look like an impressive value stock at the moment.

Investor Alert: Legal Marijuana Looking for big gains?

Now is the time to get in on a young industry primed to skyrocket from $13.5 billion in 2021 to an expected $70.6 billion by 2028.

After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could kick start an even greater bonanza for investors. Zacks Investment Research has recently closed pot stocks that have shot up as high as +147.0%

You’re invited to immediately check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.

Today, Download Marijuana Moneymakers FREE >>

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
Textainer Group Holdings Limited (TGH): Free Stock Analysis Report
Triton International Limited (TRTN): Free Stock Analysis Report
To read this article on click here.
Zacks Investment Research

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue