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Are These Transportation Stocks a Great Value Stocks Right Now?

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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.

One stock to keep an eye on is A.P. Moller-Maersk (AMKBY - Free Report) . AMKBY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AMKBY has a P/S ratio of 1.11. This compares to its industry's average P/S of 1.37.

Finally, investors will want to recognize that AMKBY has a P/CF ratio of 3.18. 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 6.15. Over the past 52 weeks, AMKBY's P/CF has been as high as 7.75 and as low as 2.74, with a median of 5.08.

ZIM Integrated Shipping Services (ZIM - Free Report) may be another strong Transportation - Shipping stock to add to your shortlist. ZIM is a # 1 (Strong Buy) stock with a Value grade of A.

Furthermore, ZIM Integrated Shipping Services holds a P/B ratio of 3.65 and its industry's price-to-book ratio is 1.03. ZIM's P/B has been as high as 11.79, as low as -21.22, with a median of 2.99 over the past 12 months.

These figures are just a handful of the metrics value investors tend to look at, but they help show that A.P. Moller-Maersk and ZIM Integrated Shipping Services are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AMKBY and ZIM feels like a great value stock at the moment.


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A.P. Moller-Maersk (AMKBY) - free report >>

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