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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Danaos (DAC - Free Report) . DAC is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 2.26, which compares to its industry's average of 4.96. DAC's Forward P/E has been as high as 3.15 and as low as 1.88, with a median of 2.20, all within the past year.
Investors should also recognize that DAC has a P/B ratio of 0.49. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. DAC's current P/B looks attractive when compared to its industry's average P/B of 1.02. DAC's P/B has been as high as 0.68 and as low as 0.41, with a median of 0.47, over the past year.
Finally, investors will want to recognize that DAC has a P/CF ratio of 2.72. 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. DAC's P/CF compares to its industry's average P/CF of 2.87. Within the past 12 months, DAC's P/CF has been as high as 2.74 and as low as 1.07, with a median of 1.73.
If you're looking for another solid Transportation - Shipping value stock, take a look at Global Ship Lease (GSL - Free Report) . GSL is a # 2 (Buy) stock with a Value score of A.
Furthermore, Global Ship Lease holds a P/B ratio of 0.67 and its industry's price-to-book ratio is 1.02. GSL's P/B has been as high as 1.01, as low as 0.60, with a median of 0.70 over the past 12 months.
These are just a handful of the figures considered in Danaos and Global Ship Lease'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 DAC and GSL is an impressive value stock right now.
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Zacks targets 5 well-established companies with solid fundamentals and a history of raising dividends. More importantly, they have the resources and will to likely pay them in the future.
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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Danaos (DAC - Free Report) . DAC is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 2.26, which compares to its industry's average of 4.96. DAC's Forward P/E has been as high as 3.15 and as low as 1.88, with a median of 2.20, all within the past year.
Investors should also recognize that DAC has a P/B ratio of 0.49. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. DAC's current P/B looks attractive when compared to its industry's average P/B of 1.02. DAC's P/B has been as high as 0.68 and as low as 0.41, with a median of 0.47, over the past year.
Finally, investors will want to recognize that DAC has a P/CF ratio of 2.72. 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. DAC's P/CF compares to its industry's average P/CF of 2.87. Within the past 12 months, DAC's P/CF has been as high as 2.74 and as low as 1.07, with a median of 1.73.
If you're looking for another solid Transportation - Shipping value stock, take a look at Global Ship Lease (GSL - Free Report) . GSL is a # 2 (Buy) stock with a Value score of A.
Furthermore, Global Ship Lease holds a P/B ratio of 0.67 and its industry's price-to-book ratio is 1.02. GSL's P/B has been as high as 1.01, as low as 0.60, with a median of 0.70 over the past 12 months.
These are just a handful of the figures considered in Danaos and Global Ship Lease'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 DAC and GSL is an impressive value stock right now.
Top 5 Dividend Stocks for Your Retirement
Zacks targets 5 well-established companies with solid fundamentals and a history of raising dividends. More importantly, they have the resources and will to likely pay them in the future.
Click now for a Special Report packed with unconventional wisdom and insights you simply won’t get from your neighborhood financial planner.
See our Top 5 now – the report is FREE >>
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