Is Triton International (TRTN) Stock Undervalued 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. Neverthe...
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Triton International (TRTN). TRTN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.31, which compares to its industry's average of 14.67. Over the past year, TRTN's Forward P/E has been as high as 9.09 and as low as 5.82, with a median of 7.73.
We also note that TRTN holds a PEG ratio of 0.63. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. TRTN's industry currently sports an average PEG of 0.96. TRTN's PEG has been as high as 0.91 and as low as 0.58, with a median of 0.77, all within the past year.
Finally, we should also recognize that TRTN has a P/CF ratio of 3.60. 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. This stock's P/CF looks attractive against its industry's average P/CF of 10.15. Within the past 12 months, TRTN's P/CF has been as high as 4.53 and as low as 2.62, with a median of 3.58.
Value investors will likely look at more than just these metrics, but the above data helps show that Triton International is likely undervalued currently. And when considering the strength of its earnings outlook, TRTN sticks out at as one of the market's strongest value stocks.
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Triton International Limited (TRTN): Free Stock Analysis Report
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