Are These Business Services Stocks a Great Value Stocks 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. 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.
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.
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 company value investors might notice is Avis Budget Group (CAR). CAR is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.50. This compares to its industry's average Forward P/E of 19.50. Over the past 52 weeks, CAR's Forward P/E has been as high as 185.44 and as low as -790.64, with a median of 17.30.
CAR is also sporting a PEG ratio of 0.49. 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. CAR's PEG compares to its industry's average PEG of 0.51. Over the last 12 months, CAR's PEG has been as high as 11.83 and as low as 0.16, with a median of 0.56.
If you're looking for another solid Business - Services value stock, take a look at DCC (DCCPF). DCCPF is a # 2 (Buy) stock with a Value score of A.
Additionally, DCC has a P/B ratio of 2.15 while its industry's price-to-book ratio sits at 3.99. For DCCPF, this valuation metric has been as high as 2.21, as low as 1.91, with a median of 2.14 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Avis Budget Group and DCC are likely undervalued currently. And when considering the strength of its earnings outlook, CAR and DCCPF sticks out as one of the market's strongest value stocks.
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Avis Budget Group, Inc. (CAR): Free Stock Analysis Report
DCC (DCCPF): Free Stock Analysis Report
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