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Are Investors Undervaluing A.P. Moller-Maersk (AMKBY) 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One company value investors might notice is A.P. Moller-Maersk (AMKBY - Free Report) . AMKBY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 2.77, which compares to its industry's average of 3.38. Over the last 12 months, AMKBY's Forward P/E has been as high as 11.07 and as low as -28.79, with a median of 5.71.

Finally, investors should note that AMKBY has a P/CF ratio of 2.02. 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. AMKBY's current P/CF looks attractive when compared to its industry's average P/CF of 2.84. Over the past year, AMKBY's P/CF has been as high as 4.65 and as low as 1.84, with a median of 2.97.

Investors could also keep in mind Euroseas (ESEA - Free Report) , an Transportation - Shipping stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Additionally, Euroseas has a P/B ratio of 1.58 while its industry's price-to-book ratio sits at 1.05. For ESEA, this valuation metric has been as high as 5.88, as low as 1.47, with a median of 2.85 over the past year.

These are only a few of the key metrics included in A.P. Moller-Maersk and Euroseas 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 ESEA look like an impressive value stock at the moment.


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