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

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.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 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 company to watch right now is The Greenbrier Companies (GBX). GBX is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 8.3, while its industry has an average P/E of 13.70. Over the past 52 weeks, GBX's Forward P/E has been as high as 13.64 and as low as 6.49, with a median of 9.85. Another valuation metric that we should highlight is GBX's P/B ratio of 0.86. 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. GBX's current P/B looks attractive when compared to its industry's average P/B of 2.54. Within the past 52 weeks, GBX's P/B has been as high as 1.41 and as low as 0.77, with a median of 1.02.Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GBX has a P/S ratio of 0.4. This compares to its industry's average P/S of 0.97.Finally, investors will want to recognize that GBX has a P/CF ratio of 4.24. 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. This stock's P/CF looks attractive against its industry's average P/CF of 8.84. Over the past 52 weeks, GBX's P/CF has been as high as 7.93 and as low as 4.03, with a median of 5.68.Value investors will likely look at more than just these metrics, but the above data helps show that The Greenbrier Companies is likely undervalued currently. And when considering the strength of its earnings outlook, GBX sticks out as one of the market's strongest value stocks.One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>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 ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks