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

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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is A.P. Moller-Maersk (AMKBY - Free Report) . AMKBY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.

Investors should also recognize that AMKBY has a P/B ratio of 0.60. The P/B ratio pits a stock's market value against 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 1.39. Within the past 52 weeks, AMKBY's P/B has been as high as 0.70 and as low as 0.47, with a median of 0.60.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. AMKBY has a P/S ratio of 0.58. This compares to its industry's average P/S of 1.24.

Finally, investors should note that AMKBY has a P/CF ratio of 1.97. 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. This stock's P/CF looks attractive against its industry's average P/CF of 5.70. Over the past year, AMKBY's P/CF has been as high as 2.25 and as low as 0.87, with a median of 1.31.

Pangaea Logistics Solutions (PANL - Free Report) may be another strong Transportation - Shipping stock to add to your shortlist. PANL is a # 1 (Strong Buy) stock with a Value grade of A.

Additionally, Pangaea Logistics Solutions has a P/B ratio of 1.15 while its industry's price-to-book ratio sits at 1.39. For PANL, this valuation metric has been as high as 1.17, as low as 0.65, with a median of 0.79 over the past year.

These are just a handful of the figures considered in A.P. Moller-Maersk and Pangaea Logistics Solutions'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 AMKBY and PANL is an impressive value stock right now.


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