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Are Investors Undervaluing Danaos (DAC) 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.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Danaos (DAC - Free Report) . DAC 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 2.75. This compares to its industry's average Forward P/E of 4.44. Over the past 52 weeks, DAC's Forward P/E has been as high as 5.30 and as low as 2.53, with a median of 3.52.
Another valuation metric that we should highlight is DAC's P/B ratio of 0.73. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.26. DAC's P/B has been as high as 1.19 and as low as 0.64, with a median of 0.81, over the past year.
Finally, we should also recognize that DAC has a P/CF ratio of 1.47. 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 3.50. Over the past year, DAC's P/CF has been as high as 2.93 and as low as 1.23, with a median of 1.57.
If you're looking for another solid Transportation - Shipping value stock, take a look at ZIM Integrated Shipping Services (ZIM - Free Report) . ZIM is a # 2 (Buy) stock with a Value score of A.
Furthermore, ZIM Integrated Shipping Services holds a P/B ratio of 1.87 and its industry's price-to-book ratio is 1.26. ZIM's P/B has been as high as 4.06, as low as -21.22, with a median of 1.82 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Danaos and ZIM Integrated Shipping Services are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DAC and ZIM feels like a great value stock at the moment.
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Are Investors Undervaluing Danaos (DAC) Right Now?
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.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Danaos (DAC - Free Report) . DAC 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 2.75. This compares to its industry's average Forward P/E of 4.44. Over the past 52 weeks, DAC's Forward P/E has been as high as 5.30 and as low as 2.53, with a median of 3.52.
Another valuation metric that we should highlight is DAC's P/B ratio of 0.73. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.26. DAC's P/B has been as high as 1.19 and as low as 0.64, with a median of 0.81, over the past year.
Finally, we should also recognize that DAC has a P/CF ratio of 1.47. 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 3.50. Over the past year, DAC's P/CF has been as high as 2.93 and as low as 1.23, with a median of 1.57.
If you're looking for another solid Transportation - Shipping value stock, take a look at ZIM Integrated Shipping Services (ZIM - Free Report) . ZIM is a # 2 (Buy) stock with a Value score of A.
Furthermore, ZIM Integrated Shipping Services holds a P/B ratio of 1.87 and its industry's price-to-book ratio is 1.26. ZIM's P/B has been as high as 4.06, as low as -21.22, with a median of 1.82 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Danaos and ZIM Integrated Shipping Services are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DAC and ZIM feels like a great value stock at the moment.