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...
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
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 is trading with P/E ratio of 6.68 right now. For comparison, its industry sports an average P/E of 15.04. Over the past 52 weeks, TGH's Forward P/E has been as high as 10.75 and as low as 5.51, with a median of 6.97.
We should also highlight that TGH has a P/B ratio of 1.22. The P/B ratio is used to compare a stock's market value with 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 1.61. Over the past year, TGH's P/B has been as high as 1.37 and as low as 0.53, with a median of 0.98.
Finally, investors will want to recognize that TGH has a P/CF ratio of 3.45. 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. TGH's current P/CF looks attractive when compared to its industry's average P/CF of 10.27. Over the past 52 weeks, TGH's P/CF has been as high as 4.27 and as low as 1.91, with a median of 3.15.
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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