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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality 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 holds a P/E ratio of 2.64, while its industry has an average P/E of 5.93. Over the past 52 weeks, DAC's Forward P/E has been as high as 2.72 and as low as 2.01, with a median of 2.28.
Investors should also recognize that DAC has a P/B ratio of 0.53. 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 stock's P/B looks solid versus its industry's average P/B of 1.37. Within the past 52 weeks, DAC's P/B has been as high as 0.56 and as low as 0.41, with a median of 0.48.
Finally, investors will want to recognize that DAC has a P/CF ratio of 2.11. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. DAC's current P/CF looks attractive when compared to its industry's average P/CF of 5.68. Over the past year, DAC's P/CF has been as high as 2.80 and as low as 1.58, with a median of 2.11.
Teekay Tankers (TNK - Free Report) may be another strong Transportation - Shipping stock to add to your shortlist. TNK is a # 1 (Strong Buy) stock with a Value grade of A.
Shares of Teekay Tankers currently holds a Forward P/E ratio of 4.23, and its PEG ratio is 1.41. In comparison, its industry sports average P/E and PEG ratios of 5.93 and 0.40.
TNK's price-to-earnings ratio has been as high as 7.12 and as low as 3.29, with a median of 4.26, while its PEG ratio has been as high as 2.37 and as low as 1.10, with a median of 1.42, all within the past year.
Teekay Tankers sports a P/B ratio of 1.39 as well; this compares to its industry's price-to-book ratio of 1.37. In the past 52 weeks, TNK's P/B has been as high as 1.51, as low as 0.91, with a median of 1.11.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Danaos and Teekay Tankers are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DAC and TNK feels like a great value stock at the moment.
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Should Value Investors Buy Danaos (DAC) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality 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 holds a P/E ratio of 2.64, while its industry has an average P/E of 5.93. Over the past 52 weeks, DAC's Forward P/E has been as high as 2.72 and as low as 2.01, with a median of 2.28.
Investors should also recognize that DAC has a P/B ratio of 0.53. 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 stock's P/B looks solid versus its industry's average P/B of 1.37. Within the past 52 weeks, DAC's P/B has been as high as 0.56 and as low as 0.41, with a median of 0.48.
Finally, investors will want to recognize that DAC has a P/CF ratio of 2.11. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. DAC's current P/CF looks attractive when compared to its industry's average P/CF of 5.68. Over the past year, DAC's P/CF has been as high as 2.80 and as low as 1.58, with a median of 2.11.
Teekay Tankers (TNK - Free Report) may be another strong Transportation - Shipping stock to add to your shortlist. TNK is a # 1 (Strong Buy) stock with a Value grade of A.
Shares of Teekay Tankers currently holds a Forward P/E ratio of 4.23, and its PEG ratio is 1.41. In comparison, its industry sports average P/E and PEG ratios of 5.93 and 0.40.
TNK's price-to-earnings ratio has been as high as 7.12 and as low as 3.29, with a median of 4.26, while its PEG ratio has been as high as 2.37 and as low as 1.10, with a median of 1.42, all within the past year.
Teekay Tankers sports a P/B ratio of 1.39 as well; this compares to its industry's price-to-book ratio of 1.37. In the past 52 weeks, TNK's P/B has been as high as 1.51, as low as 0.91, with a median of 1.11.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Danaos and Teekay Tankers are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DAC and TNK feels like a great value stock at the moment.