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Is A.P. Moller-Maersk (AMKBY) Stock Undervalued 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.

A.P. Moller-Maersk (AMKBY - Free Report) is a stock many investors are watching right now. AMKBY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 2.98. This compares to its industry's average Forward P/E of 4.16. AMKBY's Forward P/E has been as high as 11.07 and as low as -28.79, with a median of 6.77, all within 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. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. AMKBY has a P/S ratio of 0.9. This compares to its industry's average P/S of 1.52.

Finally, investors should note that AMKBY has a P/CF ratio of 2.35. 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 stock's P/CF looks attractive against its industry's average P/CF of 3.88. AMKBY's P/CF has been as high as 5.94 and as low as 2.15, with a median of 3.23, all within the past year.

Another great Transportation - Shipping stock you could consider is Hoegh LNG Partners , which is a # 2 (Buy) stock with a Value Score of A.

Hoegh LNG Partners is trading at a forward earnings multiple of 3.68 at the moment, with a PEG ratio of 0.47. This compares to its industry's average P/E of 4.16 and average PEG ratio of 0.47.


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