Is Safe Bulkers (SB) Stock Undervalued Right Now?

TNP SB

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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Safe Bulkers (SB - Free Report) is a stock many investors are watching right now. SB 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 2.62. This compares to its industry's average Forward P/E of 3.94. Over the past year, SB's Forward P/E has been as high as 4.73 and as low as 2.59, with a median of 3.32.

Another valuation metric that we should highlight is SB's P/B ratio of 0.55. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.16. Over the past year, SB's P/B has been as high as 1.12 and as low as 0.55, with a median of 0.71.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SB has a P/S ratio of 1.08. This compares to its industry's average P/S of 1.1.

Finally, our model also underscores that SB has a P/CF ratio of 1.66. 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. SB's P/CF compares to its industry's average P/CF of 3.02. Over the past 52 weeks, SB's P/CF has been as high as 3.85 and as low as 1.65, with a median of 2.07.

Tsakos Energy Navigation (TNP - Free Report) may be another strong Transportation - Shipping stock to add to your shortlist. TNP is a # 2 (Buy) stock with a Value grade of A.

Tsakos Energy Navigation sports a P/B ratio of 0.22 as well; this compares to its industry's price-to-book ratio of 1.16. In the past 52 weeks, TNP's P/B has been as high as 0.23, as low as 0.09, with a median of 0.13.

These are only a few of the key metrics included in Safe Bulkers and Tsakos Energy Navigation strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, SB and TNP look like an impressive value stock at the moment.

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