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

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

A.P. Moller-Maersk (AMKBY - Free Report) is a stock many investors are watching right now. AMKBY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. 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 1.28. This compares to its industry's average P/S of 1.36.

Finally, we should also recognize that AMKBY has a P/CF ratio of 3.73. 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 6.06. Within the past 12 months, AMKBY's P/CF has been as high as 7.54 and as low as 2.74, with a median of 4.65.

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.

Additionally, ZIM Integrated Shipping Services has a P/B ratio of 1.94 while its industry's price-to-book ratio sits at 0.99. For ZIM, this valuation metric has been as high as 11.79, as low as -21.22, with a median of 1.99 over the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that A.P. Moller-Maersk and ZIM Integrated Shipping Services are likely undervalued currently. And when considering the strength of its earnings outlook, AMKBY and ZIM sticks out as one of the market's strongest value stocks.


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

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