Yahoo Finance Is Ryder System (R) Stock Undervalued Right Now?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Ryder System (R). R is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.34, which compares to its industry's average of 13.77. Over the past 52 weeks, R's Forward P/E has been as high as 10.32 and as low as 7.23, with a median of 9.19.
Another notable valuation metric for R is its P/B ratio of 1.73. The P/B ratio pits a stock's market value against 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 1.77. Over the past 12 months, R's P/B has been as high as 1.83 and as low as 1.23, with a median of 1.57.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. R has a P/S ratio of 0.46. This compares to its industry's average P/S of 0.83.
Finally, we should also recognize that R has a P/CF ratio of 2.53. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. R's P/CF compares to its industry's average P/CF of 8.54. Within the past 12 months, R's P/CF has been as high as 2.68 and as low as 1.46, with a median of 2.24.
Value investors will likely look at more than just these metrics, but the above data helps show that Ryder System is likely undervalued currently. And when considering the strength of its earnings outlook, R sticks out at as one of the market's strongest value stocks.
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Ryder System, Inc. (R) : Free Stock Analysis Report
