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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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company value investors might notice is Costamare (CMRE - Free Report) . CMRE is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 3.57 right now. For comparison, its industry sports an average P/E of 5.73. Over the past 52 weeks, CMRE's Forward P/E has been as high as 4.59 and as low as 2.17, with a median of 2.70.
Another valuation metric that we should highlight is CMRE's P/B ratio of 0.50. The P/B ratio is used to compare a stock's market value with 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 1.13. Over the past 12 months, CMRE's P/B has been as high as 0.70 and as low as 0.41, with a median of 0.55.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CMRE has a P/S ratio of 0.95. This compares to its industry's average P/S of 0.97.
Finally, our model also underscores that CMRE has a P/CF ratio of 1.62. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CMRE's current P/CF looks attractive when compared to its industry's average P/CF of 3.42. Within the past 12 months, CMRE's P/CF has been as high as 1.96 and as low as 1.22, with a median of 1.61.
Euroseas (ESEA - Free Report) may be another strong Transportation - Shipping stock to add to your shortlist. ESEA is a # 1 (Strong Buy) stock with a Value grade of A.
Euroseas sports a P/B ratio of 0.82 as well; this compares to its industry's price-to-book ratio of 1.13. In the past 52 weeks, ESEA's P/B has been as high as 1.24, as low as 0.64, with a median of 0.82.
These are just a handful of the figures considered in Costamare and Euroseas'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 CMRE and ESEA is an impressive value stock right now.
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Is Costamare (CMRE) Stock Undervalued 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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company value investors might notice is Costamare (CMRE - Free Report) . CMRE is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 3.57 right now. For comparison, its industry sports an average P/E of 5.73. Over the past 52 weeks, CMRE's Forward P/E has been as high as 4.59 and as low as 2.17, with a median of 2.70.
Another valuation metric that we should highlight is CMRE's P/B ratio of 0.50. The P/B ratio is used to compare a stock's market value with 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 1.13. Over the past 12 months, CMRE's P/B has been as high as 0.70 and as low as 0.41, with a median of 0.55.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CMRE has a P/S ratio of 0.95. This compares to its industry's average P/S of 0.97.
Finally, our model also underscores that CMRE has a P/CF ratio of 1.62. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CMRE's current P/CF looks attractive when compared to its industry's average P/CF of 3.42. Within the past 12 months, CMRE's P/CF has been as high as 1.96 and as low as 1.22, with a median of 1.61.
Euroseas (ESEA - Free Report) may be another strong Transportation - Shipping stock to add to your shortlist. ESEA is a # 1 (Strong Buy) stock with a Value grade of A.
Euroseas sports a P/B ratio of 0.82 as well; this compares to its industry's price-to-book ratio of 1.13. In the past 52 weeks, ESEA's P/B has been as high as 1.24, as low as 0.64, with a median of 0.82.
These are just a handful of the figures considered in Costamare and Euroseas'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 CMRE and ESEA is an impressive value stock right now.