Should Value Investors Buy Custom Truck One Source (CTOS) 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 latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system’s “Value” category. Stocks with “A” grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Custom Truck One Source (CTOS Quick QuoteCTOS – Free Report) . CTOS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Investors should also note that CTOS holds a PEG ratio of 0.76. 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. CTOS’s industry has an average PEG of 1 right now. CTOS’s PEG has been as high as 1.42 and as low as 0.65, with a median of 0.97, all within the past year.

Another notable valuation metric for CTOS is its P/B ratio of 1.25. The P/B ratio pits a stock’s market value against 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 2.89. Over the past 12 months, CTOS’s P/B has been as high as 1.67 and as low as 0.87, with a median of 1.30.

These are just a handful of the figures considered in Custom Truck One Source’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 CTOS is an impressive value stock right now.