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Are Investors Undervaluing These Transportation Stocks Right Now?
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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 stock to keep an eye on is A.P. Moller-Maersk (AMKBY - Free Report) . AMKBY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AMKBY has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.44.
Finally, we should also recognize that AMKBY has a P/CF ratio of 3.25. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 6.11. Over the past year, AMKBY's P/CF has been as high as 7.75 and as low as 2.74, with a median of 4.84.
If you're looking for another solid Transportation - Shipping value stock, take a look at Capital Product Partners (CPLP - Free Report) . CPLP is a # 1 (Strong Buy) stock with a Value score of A.
Capital Product Partners also has a P/B ratio of 0.62 compared to its industry's price-to-book ratio of 0.99. Over the past year, its P/B ratio has been as high as 0.64, as low as 0.34, with a median of 0.50.
Value investors will likely look at more than just these metrics, but the above data helps show that A.P. Moller-Maersk and Capital Product Partners are likely undervalued currently. And when considering the strength of its earnings outlook, AMKBY and CPLP sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing These Transportation Stocks Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 stock to keep an eye on is A.P. Moller-Maersk (AMKBY - Free Report) . AMKBY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AMKBY has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.44.
Finally, we should also recognize that AMKBY has a P/CF ratio of 3.25. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 6.11. Over the past year, AMKBY's P/CF has been as high as 7.75 and as low as 2.74, with a median of 4.84.
If you're looking for another solid Transportation - Shipping value stock, take a look at Capital Product Partners (CPLP - Free Report) . CPLP is a # 1 (Strong Buy) stock with a Value score of A.
Capital Product Partners also has a P/B ratio of 0.62 compared to its industry's price-to-book ratio of 0.99. Over the past year, its P/B ratio has been as high as 0.64, as low as 0.34, with a median of 0.50.
Value investors will likely look at more than just these metrics, but the above data helps show that A.P. Moller-Maersk and Capital Product Partners are likely undervalued currently. And when considering the strength of its earnings outlook, AMKBY and CPLP sticks out as one of the market's strongest value stocks.