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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 #2 (Buy) and a Value grade of A.
Another valuation metric that we should highlight is DAC's P/B ratio of 0.15. 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 0.44. Over the past 12 months, DAC's P/B has been as high as 0.27 and as low as 0.08, with a median of 0.13.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DAC has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.68.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Danaos is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DAC feels like a great value stock at the moment.
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Should Value Investors Buy Danaos (DAC) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 #2 (Buy) and a Value grade of A.
Another valuation metric that we should highlight is DAC's P/B ratio of 0.15. 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 0.44. Over the past 12 months, DAC's P/B has been as high as 0.27 and as low as 0.08, with a median of 0.13.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. DAC has a P/S ratio of 0.34. This compares to its industry's average P/S of 0.68.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Danaos is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DAC feels like a great value stock at the moment.