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Is A.P. Moller-Maersk (AMKBY) a Great Value Stock 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.

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 to watch right now is A.P. Moller-Maersk (AMKBY - Free Report) . AMKBY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. AMKBY has a P/S ratio of 0.93. This compares to its industry's average P/S of 1.56.

Finally, investors should note that AMKBY has a P/CF ratio of 2.34. 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 stock's P/CF looks attractive against its industry's average P/CF of 3.78. Over the past year, AMKBY's P/CF has been as high as 5.94 and as low as 2.15, with a median of 3.36.

Eagle Bulk Shipping may be another strong Transportation - Shipping stock to add to your shortlist. EGLE is a # 2 (Buy) stock with a Value grade of A.

Eagle Bulk Shipping sports a P/B ratio of 1.30 as well; this compares to its industry's price-to-book ratio of 1.11. In the past 52 weeks, EGLE's P/B has been as high as 1.44, as low as 0.82, with a median of 1.07.

These are only a few of the key metrics included in A.P. Moller-Maersk and Eagle Bulk Shipping strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, AMKBY and EGLE look like an impressive value stock at the moment.


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