Based on key financial metrics such as the price-to-sales ratio, shareholder yield and the price-earnings ratio, the following 3 stocks made the list for top value stocks in the Freight & Logistics - Courier, Postal, Air Freight & Land industry. Those looking for value stocks to add to their portfolio may want to use this list as a starting point for further investment research.

Why Focus on Undervalued Freight & Logistics - Courier, Postal, Air Freight & Land Stocks?

Value investors seek to buy stocks at a discount to their intrinsic value. Long-term returns show that such strategies are advantageous. Value stocks, as a group, tend to outperform growth stocks over extended periods of time. Typically, value investors perform financial analysis of numerous metrics, don’t follow the herd and are long-term investors.

AAII’s A+ Investor Value Grade is derived from a stock’s Value Score. The Value Score is the percentile rank of the average of the percentile ranks of the price-to-sales ratio, price-earnings ratio, enterprise-value-to-EBITDA (EV/EBITDA) ratio, shareholder yield, price-to-book-value ratio and price-to-free-cash-flow ratio. The score is variable, meaning it can consider all six ratios or, should any of the six ratios not be valid, the remaining ratios that are valid. To be assigned a Value Score, stocks must have a valid (non-null) ratio and corresponding ranking for at least two of the six valuation ratios.

What Goes Into AAII’s Value Grade?

Stock evaluation requires access to huge amounts of data as well as the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movement. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors with that task.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A–F grades for more than just value. It is possible for a stock to appear cheap based on one valuation metric but appear expensive on another. It is also possible for one valuation ratio to be associated with outperforming stocks during certain periods of time but not others. Some stocks may even have null values for certain metrics like the price-earnings ratio or the price-to-book ratio but not others. An example of this would be a company with losses instead of profits or a negative book value because of heavy borrowing. Negative earnings or book value result in non-meaningful ratios that are left blank or null.

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3 Undervalued Freight & Logistics - Courier, Postal, Air Freight & Land Stocks

Of course, there are countless value stocks that are worth mentioning, but this is a concise list of the top 3 undervalued stocks in the Freight & Logistics - Courier, Postal, Air Freight & Land industry for Wednesday, May 22, 2024. Let’s take a closer look at their individual scores to see how they measure up against each other and the Freight & Logistics - Courier, Postal, Air Freight & Land industry median.

The Value Grade is assigned based on how each stock’s composite valuation compares to all other stocks.

The process for assigning grades starts with each variable for a given stock. The percentile rankings for all valid ratios that a stock has are calculated. So, for instance, a stock could have a price-to-book ranking in the 43rd percentile, a price-earnings ranking in the 67th percentile, a price-to-sales ranking in the 23rd percentile, etc. Then, those rankings are averaged for each stock. (A minimum of two valid variables are required, though all six will be used if available.)

Once the average of the individual variables is calculated, that average is ranked against all stocks. Put another way, each stock’s composite valuation is compared to all other stocks. These ranks are then sorted into quintiles from the cheapest 20% (a grade of A) to the most expensive 20% (a grade of F).

As always, we recommend that you conduct proper due diligence and research before investing in any security. We also suggest that investors utilize numerous grades, not just value, when it comes to deciding whether a company is a good fit for their allocation needs.

Air Transport Services Group Inc.’s Value Grade

Value Grade:

Air Transport Services Group, Inc. is a holding company. The Company is a provider of aircraft leasing and air cargo transportation and related services. It operates through two segments: Cargo Aircraft Management, Inc. (CAM) and ACMI Services. The CAM segment includes the leasing of aircraft and aircraft engines. Its freighter fleet is composed primarily of Boeing 767 aircraft. The ACMI Services segment includes the cargo and passenger aircraft flight operations of its three airlines. Its ACMI Services business segment consists of the cargo and passenger operations of its three airline subsidiaries: ABX Air, Inc., Air Transport International, Inc., and Omni Air International, LLC. Its airline is responsible for providing full service, including fuel, aircraft, flight crews, maintenance, aircraft hull and liability insurance, landing fees, parking fees, catering, passenger handling fees, ground and cargo handling expenses and other operating expenses for a fixed, all-inclusive price.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Air Transport Services Group Inc. has a Value Score of 93, which is considered to be undervalued.

When you look at Air Transport Services Group Inc.’s price-to-sales ratio at 0.45 compared to the industry median at 0.60, this company has a lower price relative to revenue compared to its peers. This could make Air Transport Services Group Inc.’s stock more attractive for value investors.

Air Transport Services Group Inc.’s price-earnings ratio is 22.01 compared to the industry median at 19.82. This means it has a higher share price relative to earnings compared to its peers. This could make Air Transport Services Group Inc. less attractive for value investors.

Now, let’s assess Air Transport Services Group Inc.’s EV/EBITDA ratio, also known as enterprise multiple. At 4.7, when compared to the industry median of 11.1, the company may be considered undervalued in relation to its peers. Value investors could use the enterprise multiple to identify stocks that are considered overvalued or undervalued relative to their industry.

Shareholder yield is the sum of a stock’s dividend yield (paid over previous 12 months minus special dividends) and the percentage of net share buybacks over the previous 12 months. Air Transport Services Group Inc.’s shareholder yield is higher than its industry median ratio of 1.51%. Value investors may look for an attractive shareholder yield because it can be a powerful tool for identifying if the company has a good management team.

As one of the most common value metrics, the price-to-book ratio evaluates a company’s current market price relative to its book value. Air Transport Services Group Inc.’s price-to-book ratio is lower than its industry median ratio of 1.76. This could make Air Transport Services Group Inc. more attractive to investors looking for a new addition to their portfolio.

Addentax Group Corp’s Value Grade

Value Grade:

Addentax Group Corp is a China-based holding company principally engaged in the manufacture of garment and provision of logistic services. The Company operates through four main segments. Garment Manufacturing Business segment is engaged in the production of garment and sales of garment to wholesalers. Logistic Business segment is involved in the provision of delivery and courier services covering approximately 79 cities and two municipalities in China. Property Management and Subleasing business segment provides shops subleasing and property services for garment wholesalers and retailers. Epidemic Prevention Supplies Business segment is involved in manufacturing and distribution of epidemic prevention products and resale of epidemic prevention supplies. The Company is also outsourcing some of the businesses to contractors.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Addentax Group Corp has a Value Score of 65, which is considered to be undervalued.

Addentax Group Corp’s price-to-book ratio is higher than its peers. This could make Addentax Group Corp less attractive for value investors when compared to the industry median at 1.76.

You can read more about Addentax Group Corp’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Deutsche Post AG - ADR’s Value Grade

Value Grade:

Deutsche Post AG is a Germany-based company. The Company operates through two brands, DHL which engages in parcel shipment, international express delivery, freight transport, supply chain management, and e-commerce solutions along with Deutsche Post which is a mail and parcel provider. The Company is organized into five operating divisions: Express, Global Forwarding and Freight, Supply Chain, eCommerce Solutions, and Post & Parcel.

Stocks with a Value Score from 81 to 100 are considered deep value, those with a score between 61 and 80 are value and so on.

Deutsche Post AG - ADR has a Value Score of 86, which is considered to be undervalued.

Deutsche Post AG - ADR’s price-earnings ratio is 13.5 compared to the industry median at 19.8. This means that it has a lower price relative to its earnings compared to its peers. This makes Deutsche Post AG - ADR more attractive for value investors.

Deutsche Post AG - ADR’s price-to-book ratio is lower than its peers. This could make Deutsche Post AG - ADR more attractive for value investors when compared to the industry median at 1.76.

You can read more about Deutsche Post AG - ADR’s key financial metrics like shareholder yield, price-to-free-cash-flow and EV/EBITDA ratio, or learn more about its Momentum and Growth Grades, by subscribing to A+ Investor.

Other Freight & Logistics - Courier, Postal, Air Freight & Land Stock Grades

Value is just one of the five Stock Grades included in our A+ Investor service. AAII members can see the top-graded stocks—those with grades of A or B for value, growth, momentum, earnings estimate revisions and quality—on the A+ Stock Grades Screener.

Also, if you want full access to all of AAII’s premium services, you can subscribe to one convenient bundled plan called AAII Platinum where you can try out A+ Investor, AAII Dividend Investing, the Stock Superstars Report, Growth Investing and VMQ Stocks. With the other premium services, you can dive deep into additional metrics, portfolios, commentary and information about Freight & Logistics - Courier, Postal, Air Freight & Land stocks as well as other industrys.

Choosing Which of the 3 Best Freight & Logistics - Courier, Postal, Air Freight & Land Stocks Is Right for You

Choosing which value stocks to invest in will ultimately depend on your individual goals and allocation; however, comparing similar value stocks in the same industry can help you analyze which might be better investments for you in the long run. So, let’s take a look at the Value Grade for all of our stocks.

• Air Transport Services Group Inc. stock has a Value Grade of A.
• Addentax Group Corp stock has a Value Grade of B.
• Deutsche Post AG - ADR stock has a Value Grade of A.

Now that you have a bit more background about each of the 3 undervalued stocks in the Freight & Logistics - Courier, Postal, Air Freight & Land industry as well as their overall grades, it’s time for you to conduct additional research to see if these could fit your portfolio needs based on your goals and risk tolerance. AAII can help you figure out both and identify which investments align with what works best for you.

We do so through a program of education that teaches you to invest for yourself and become an effective manager of your own wealth—no more relying on others for your financial independence. You can rely on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis that makes you a better investor.

A+ Investor adds to that qualitative teaching by giving you a powerful data suite that helps you whittle down investment decisions to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Additional Resources About Freight & Logistics - Courier, Postal, Air Freight & Land Stocks

Want to learn more about Freight & Logistics - Courier, Postal, Air Freight & Land stocks to see if they could be the right investment for you? Check out some additional resources and articles to help you on your financial journey.

• 3 Undervalued Freight & Logistics - Courier, Postal, Air Freight & Land Stocks for Wednesday, May 22
• Why Forward Air Corp’s (FWRD) Stock Is Down 6.96%
• 3 Undervalued Freight & Logistics - Courier, Postal, Air Freight & Land Stocks for Monday, May 20
• Why Forward Air Corp’s (FWRD) Stock Is Down 5.46%

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