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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.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Seanergy Maritime Holdings (SHIP - Free Report) . SHIP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 2.65, while its industry has an average P/E of 3.84. Over the past 52 weeks, SHIP's Forward P/E has been as high as 113 and as low as 2.27, with a median of 4.45.

Investors should also recognize that SHIP has a P/B ratio of 0.70. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. SHIP's current P/B looks attractive when compared to its industry's average P/B of 1.06. Over the past year, SHIP's P/B has been as high as 1.57 and as low as 0.59, with a median of 0.81.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SHIP has a P/S ratio of 1.39. This compares to its industry's average P/S of 1.42.

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 2.42 and its industry's price-to-book ratio is 1.06. ZIM's P/B has been as high as 11.79, as low as -21.22, with a median of 2.07 over the past 12 months.

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


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Seanergy Maritime Holdings Corp (SHIP) - free report >>

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