Should Value Investors Buy Schneider National (SNDR) Stock?
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 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.
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 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 Schneider National (SNDR). SNDR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 11.94, while its industry has an average P/E of 20.09. Over the past 52 weeks, SNDR's Forward P/E has been as high as 18.90 and as low as 10.99, with a median of 14.24.
Investors will also notice that SNDR has a PEG ratio of 0.67. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SNDR's PEG compares to its industry's average PEG of 1.20. Over the past 52 weeks, SNDR's PEG has been as high as 2.89 and as low as 0.61, with a median of 1.08.
Another valuation metric that we should highlight is SNDR's P/B ratio of 1.92. Investors use the P/B ratio to look at a stock's market value versus 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 4.15. Over the past 12 months, SNDR's P/B has been as high as 2.23 and as low as 1.54, with a median of 1.86.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SNDR has a P/S ratio of 0.84. This compares to its industry's average P/S of 1.38.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Schneider National is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SNDR feels like a great value stock at the moment.
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Schneider National, Inc. (SNDR): Free Stock Analysis Report
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