Are these transport stocks undervalued at the moment?
TZacks Rank’s proven system focuses on profit estimates and revising estimates to find winning stocks. Still, we know our readers all have their own perspectives, so we always look at the latest trends in value, growth, and momentum to find solid choices.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has been proven successful in all kinds of market environments. Value investors use a variety of methods, including proven valuation metrics, to find these stocks.
Fortunately, Zacks has developed his own style scoring system with the aim of finding stocks with specific characteristics. Value investors will be interested in the “Value” category of the system. Stocks with both an “A” rating in the Value category and high Zacks ranks are some of the most profitable stocks on the market right now.
One company to watch right now is Ryder System (R). R currently holds a Zacks rank of No.1 (strong buy) and a value rating of A. The stock is currently trading with a P / E ratio of 9.29. By comparison, its industry has an average P / E of 16.09. Over the past year, R’s forward P / E has hit 17.66 and as low as 8.99, with a median of 13.66.
Investors may also keep in mind Triton (TRTN), a transport – equipment and rental stock with a Zacks rating of # 2 (buy) and a value rating of A.
Triton is currently trading at a futures earnings multiple of 6.27, with a PEG ratio of 0.63. This compares to its industry’s average P / E of 16.09 and the average PEG ratio of 1.27.
TRTN’s price-to-earnings ratio has been as high as 9.09 and as low as 5.82, with a median of 6.60, while its PEG ratio has been as high as 0.91 and as low as 0, 58, with a median of 0.66, all in the past year.
Additionally, Triton has a P / N ratio of 1.74 while its industry’s price-to-book ratio stands at 1.75. For TRTN, that valuation metric has been as high as 2.08, as low as 1.46, with a median of 1.68 in the past year.
These are just a few of the numbers taken into account in Ryder System and Triton’s great Value quality. Still, they help show that the title is likely undervalued right now. Add that to the strength of its earnings outlook, and we can clearly see that R and TRTN are impressive value right now.
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Each has been handpicked by a Zacks expert as the # 1 favorite stock to earn + 100% or more in 2021. Previous recommendations have climbed + 143.0%, + 175.9%, +498 , 3% and + 673.0%.
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Ryder System, Inc. (R): Free Stock Analysis Report
Triton International Limited (TRTN): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.