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Should Value Investors Buy A.P. Moller-Maersk (AMKBY) Stock?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Another valuation metric that we should highlight is AMKBY's P/B ratio of 0.48. 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 1.14. AMKBY's P/B has been as high as 0.72 and as low as 0.48, with a median of 0.63, over the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. 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 0.47. This compares to its industry's average P/S of 1.03.

Finally, we should also recognize that AMKBY has a P/CF ratio of 1.59. 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 3.72. Over the past year, AMKBY's P/CF has been as high as 2.05 and as low as 0.87, with a median of 1.14.

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

Shares of Scorpio Tankers are currently trading at a forward earnings multiple of 7.33 and a PEG ratio of 0.22 compared to its industry's P/E and PEG ratios of 6.34 and 0.36, respectively.


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