Should Value Investors Buy Seanergy Maritime Holdings (SHIP) Stock?

SHIP

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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Seanergy Maritime Holdings (SHIP - Free Report) is a stock many investors are watching right now. SHIP is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.

Another notable valuation metric for SHIP is its P/B ratio of 0.78. 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 1.42. Over the past 12 months, SHIP's P/B has been as high as 0.80 and as low as 0.34, with a median of 0.50.

Finally, investors will want to recognize that SHIP has a P/CF ratio of 5.24. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. SHIP's current P/CF looks attractive when compared to its industry's average P/CF of 7.48. Over the past year, SHIP's P/CF has been as high as 6.17 and as low as 1.79, with a median of 4.08.

These are only a few of the key metrics included in Seanergy Maritime Holdings's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SHIP looks like an impressive value stock at the moment.

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