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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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Danaos (DAC - Free Report) . DAC 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 2.21 right now. For comparison, its industry sports an average P/E of 5.89. Over the past year, DAC's Forward P/E has been as high as 2.49 and as low as 1.88, with a median of 2.20.
We should also highlight that DAC has a P/B ratio of 0.49. 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 1.17. Over the past year, DAC's P/B has been as high as 0.53 and as low as 0.41, with a median of 0.47.
Finally, we should also recognize that DAC has a P/CF ratio of 2.12. 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. DAC's current P/CF looks attractive when compared to its industry's average P/CF of 3.52. Over the past year, DAC's P/CF has been as high as 2.80 and as low as 1.37, with a median of 1.87.
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.
Furthermore, Euroseas holds a P/B ratio of 0.84 and its industry's price-to-book ratio is 1.17. ESEA's P/B has been as high as 1.16, as low as 0.64, with a median of 0.82 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 Euroseas are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DAC and ESEA 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Danaos (DAC - Free Report) . DAC 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 2.21 right now. For comparison, its industry sports an average P/E of 5.89. Over the past year, DAC's Forward P/E has been as high as 2.49 and as low as 1.88, with a median of 2.20.
We should also highlight that DAC has a P/B ratio of 0.49. 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 1.17. Over the past year, DAC's P/B has been as high as 0.53 and as low as 0.41, with a median of 0.47.
Finally, we should also recognize that DAC has a P/CF ratio of 2.12. 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. DAC's current P/CF looks attractive when compared to its industry's average P/CF of 3.52. Over the past year, DAC's P/CF has been as high as 2.80 and as low as 1.37, with a median of 1.87.
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.
Furthermore, Euroseas holds a P/B ratio of 0.84 and its industry's price-to-book ratio is 1.17. ESEA's P/B has been as high as 1.16, as low as 0.64, with a median of 0.82 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 Euroseas are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DAC and ESEA feels like a great value stock at the moment.