Are Investors Undervaluing Seacor (CKH) Right Now?

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 company to watch right now is Seacor . CKH is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Investors should also recognize that CKH has a P/B ratio of 0.96. The P/B ratio pits a stock's market value against 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 1.33. Within the past 52 weeks, CKH's P/B has been as high as 1.40 and as low as 0.96, with a median of 1.17.

Finally, investors should note that CKH has a P/CF ratio of 3.91. 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. CKH's P/CF compares to its industry's average P/CF of 15.03. Within the past 12 months, CKH's P/CF has been as high as 25.45 and as low as 3.91, with a median of 5.93.

These are only a few of the key metrics included in Seacor'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, CKH looks like an impressive value stock at the moment.

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