Is The Greenbrier Companies (GBX) Stock Undervalued Right Now?

Zacks
02-05

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is The Greenbrier Companies (GBX). GBX is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 10.40, which compares to its industry's average of 15.57. GBX's Forward P/E has been as high as 14.07 and as low as 10.06, with a median of 11.77, all within the past year.

GBX is also sporting a PEG ratio of 0.89. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. GBX's industry has an average PEG of 1.15 right now. Over the past 52 weeks, GBX's PEG has been as high as 2.01 and as low as 0.49, with a median of 0.94.

Another notable valuation metric for GBX is its P/B ratio of 1.25. 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 solid versus its industry's average P/B of 2.75. Over the past 12 months, GBX's P/B has been as high as 1.41 and as low as 0.92, with a median of 1.09.

These are just a handful of the figures considered in The Greenbrier Companies's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GBX is an impressive value stock right now.

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Greenbrier Companies, Inc. (The) (GBX) : Free Stock Analysis Report

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