Is Textainer Group (TGH) 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.
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Textainer Group (TGH). TGH is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 6.47. This compares to its industry's average Forward P/E of 14.72. Over the last 12 months, TGH's Forward P/E has been as high as 10.75 and as low as 5.51, with a median of 7.10.
Another valuation metric that we should highlight is TGH's 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 1.60. Over the past 12 months, TGH's P/B has been as high as 1.37 and as low as 0.52, with a median of 0.95.
Finally, our model also underscores that TGH has a P/CF ratio of 3.43. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 10.19. Over the past 52 weeks, TGH's P/CF has been as high as 4.27 and as low as 1.86, with a median of 3.08.
Value investors will likely look at more than just these metrics, but the above data helps show that Textainer Group is likely undervalued currently. And when considering the strength of its earnings outlook, TGH sticks out at as one of the market's strongest value stocks.
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Textainer Group Holdings Limited (TGH): Free Stock Analysis Report
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