We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing These Transportation Stocks Right Now?
Read MoreHide Full Article
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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Danaos (DAC - Free Report) . DAC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 3.50, while its industry has an average P/E of 4.49. Over the past year, DAC's Forward P/E has been as high as 5.30 and as low as 2.60, with a median of 3.84.
Another notable valuation metric for DAC is its P/B ratio of 1.03. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. DAC's current P/B looks attractive when compared to its industry's average P/B of 1.15. DAC's P/B has been as high as 1.19 and as low as 0.70, with a median of 0.86, over the past year.
Finally, investors should note that DAC has a P/CF ratio of 1.83. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 4.08. DAC's P/CF has been as high as 4.06 and as low as 1.23, with a median of 1.68, all within the past year.
Golden Ocean Group (GOGL - Free Report) may be another strong Transportation - Shipping stock to add to your shortlist. GOGL is a # 2 (Buy) stock with a Value grade of A.
Golden Ocean Group sports a P/B ratio of 0.91 as well; this compares to its industry's price-to-book ratio of 1.15. In the past 52 weeks, GOGL's P/B has been as high as 0.96, as low as 0.56, with a median of 0.77.
These are just a handful of the figures considered in Danaos and Golden Ocean Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DAC and GOGL is an impressive value stock right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing These Transportation Stocks Right Now?
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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Danaos (DAC - Free Report) . DAC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 3.50, while its industry has an average P/E of 4.49. Over the past year, DAC's Forward P/E has been as high as 5.30 and as low as 2.60, with a median of 3.84.
Another notable valuation metric for DAC is its P/B ratio of 1.03. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. DAC's current P/B looks attractive when compared to its industry's average P/B of 1.15. DAC's P/B has been as high as 1.19 and as low as 0.70, with a median of 0.86, over the past year.
Finally, investors should note that DAC has a P/CF ratio of 1.83. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 4.08. DAC's P/CF has been as high as 4.06 and as low as 1.23, with a median of 1.68, all within the past year.
Golden Ocean Group (GOGL - Free Report) may be another strong Transportation - Shipping stock to add to your shortlist. GOGL is a # 2 (Buy) stock with a Value grade of A.
Golden Ocean Group sports a P/B ratio of 0.91 as well; this compares to its industry's price-to-book ratio of 1.15. In the past 52 weeks, GOGL's P/B has been as high as 0.96, as low as 0.56, with a median of 0.77.
These are just a handful of the figures considered in Danaos and Golden Ocean Group's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DAC and GOGL is an impressive value stock right now.