Are Investors Undervaluing A.P. Moller-Maersk (AMKBY) Right Now?

TNP AMKBY

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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One stock to keep an eye on is A.P. Moller-Maersk (AMKBY - Free Report) . AMKBY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Another valuation metric that we should highlight is AMKBY's P/B ratio of 0.56. 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. This stock's P/B looks attractive against its industry's average P/B of 1.03. Over the past 12 months, AMKBY's P/B has been as high as 1.08 and as low as 0.50, with a median of 0.67.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AMKBY has a P/S ratio of 0.41. This compares to its industry's average P/S of 1.06.

Finally, we should also recognize that AMKBY has a P/CF ratio of 0.93. 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. This stock's P/CF looks attractive against its industry's average P/CF of 2.86. Over the past year, AMKBY's P/CF has been as high as 1.76 and as low as 0.83, with a median of 1.10.

If you're looking for another solid Transportation - Shipping value stock, take a look at Tsakos Energy Navigation (TNP - Free Report) . TNP is a # 2 (Buy) stock with a Value score of A.

Tsakos Energy Navigation sports a P/B ratio of 0.35 as well; this compares to its industry's price-to-book ratio of 1.03. In the past 52 weeks, TNP's P/B has been as high as 0.48, as low as 0.12, with a median of 0.34.

These are just a handful of the figures considered in A.P. Moller-Maersk and Tsakos Energy Navigation'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 AMKBY and TNP is an impressive value stock right now.

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