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Should Value Investors Buy Safe Bulkers (SB) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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.

Safe Bulkers (SB - Free Report) is a stock many investors are watching right now. SB is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 4.19, while its industry has an average P/E of 5.07. SB's Forward P/E has been as high as 10.65 and as low as 2.91, with a median of 5.59, all within the past year.

Finally, we should also recognize that SB has a P/CF ratio of 3.52. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.35. Over the past 52 weeks, SB's P/CF has been as high as 7.40 and as low as 2.30, with a median of 3.53.

These are just a handful of the figures considered in Safe Bulkers'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 SB is an impressive value stock right now.


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