Should Value Investors Buy Seacor (CKH) Stock?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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.

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 stock to keep an eye on is Seacor . CKH is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 19.88. This compares to its industry's average Forward P/E of 46.31. Over the past 52 weeks, CKH's Forward P/E has been as high as 26.44 and as low as 14.82, with a median of 20.27.

We should also highlight that CKH has a P/B ratio of 0.80. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. CKH's current P/B looks attractive when compared to its industry's average P/B of 1.72. CKH's P/B has been as high as 1.19 and as low as 0.57, with a median of 0.96, over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Seacor is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CKH feels like a great value stock at the moment.

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