Is CAI International (CAI) 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...
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 CAI International (CAI). CAI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 6.91, while its industry has an average P/E of 14.72. Over the past 52 weeks, CAI's Forward P/E has been as high as 8.84 and as low as 4.59, with a median of 6.45.
Investors should also recognize that CAI has a P/B ratio of 1.49. 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. This stock's P/B looks solid versus its industry's average P/B of 1.60. CAI's P/B has been as high as 1.56 and as low as 0.64, with a median of 1.11, over the past year.
Finally, we should also recognize that CAI has a P/CF ratio of 4.35. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CAI's current P/CF looks attractive when compared to its industry's average P/CF of 10.19. Within the past 12 months, CAI's P/CF has been as high as 5.92 and as low as 3.07, with a median of 4.04.
These figures are just a handful of the metrics value investors tend to look at, but they help show that CAI International is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CAI feels like a great value stock at the moment.
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CAI International, Inc. (CAI): Free Stock Analysis Report
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