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Should Value Investors Buy These Transportation Stocks?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
Golden Ocean Group (GOGL - Free Report) is a stock many investors are watching right now. GOGL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We should also highlight that GOGL has a P/B ratio of 0.90. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.17. GOGL's P/B has been as high as 0.96 and as low as 0.56, with a median of 0.75, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GOGL has a P/S ratio of 1.43. This compares to its industry's average P/S of 1.51.
Finally, we should also recognize that GOGL has a P/CF ratio of 5.06. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.05. Over the past year, GOGL's P/CF has been as high as 11.33 and as low as -96.07, with a median of 5.07.
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.
ZIM Integrated Shipping Services also has a P/B ratio of 2.59 compared to its industry's price-to-book ratio of 1.17. Over the past year, its P/B ratio has been as high as 11.79, as low as -21.22, with a median of 2.07.
Value investors will likely look at more than just these metrics, but the above data helps show that Golden Ocean Group and ZIM Integrated Shipping Services are likely undervalued currently. And when considering the strength of its earnings outlook, GOGL and ZIM sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy These Transportation Stocks?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
Golden Ocean Group (GOGL - Free Report) is a stock many investors are watching right now. GOGL is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
We should also highlight that GOGL has a P/B ratio of 0.90. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.17. GOGL's P/B has been as high as 0.96 and as low as 0.56, with a median of 0.75, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GOGL has a P/S ratio of 1.43. This compares to its industry's average P/S of 1.51.
Finally, we should also recognize that GOGL has a P/CF ratio of 5.06. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.05. Over the past year, GOGL's P/CF has been as high as 11.33 and as low as -96.07, with a median of 5.07.
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.
ZIM Integrated Shipping Services also has a P/B ratio of 2.59 compared to its industry's price-to-book ratio of 1.17. Over the past year, its P/B ratio has been as high as 11.79, as low as -21.22, with a median of 2.07.
Value investors will likely look at more than just these metrics, but the above data helps show that Golden Ocean Group and ZIM Integrated Shipping Services are likely undervalued currently. And when considering the strength of its earnings outlook, GOGL and ZIM sticks out as one of the market's strongest value stocks.