Should Value Investors Buy The Greenbrier Companies (GBX) Stock?

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.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.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 to watch right now is The Greenbrier Companies (GBX). GBX is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 12.68, while its industry has an average P/E of 14.98. Over the last 12 months, GBX's Forward P/E has been as high as 14.07 and as low as 10.06, with a median of 11.84.We also note that GBX holds a PEG ratio of 0.54. 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 1.08 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 1.52.Another notable valuation metric for GBX is its P/B ratio of 1.34. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. GBX's current P/B looks attractive when compared to its industry's average P/B of 2.11. GBX's P/B has been as high as 1.34 and as low as 0.78, with a median of 1.04, over the past year.Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GBX has a P/S ratio of 0.58. This compares to its industry's average P/S of 1.4.Finally, our model also underscores that GBX has a P/CF ratio of 7.90. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. GBX's P/CF compares to its industry's average P/CF of 10.06. Over the past 52 weeks, GBX's P/CF has been as high as 8.15 and as low as 5.45, with a median of 7.01.These are only a few of the key metrics included in The Greenbrier Companies's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, GBX looks like an impressive value stock at the moment.Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Greenbrier Companies, Inc. (The) (GBX): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks