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Is Costamare (CMRE) a Great Value Stock Right Now?

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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.

One company to watch right now is Costamare (CMRE - Free Report) . CMRE is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 4.95, while its industry has an average P/E of 6.99. Over the last 12 months, CMRE's Forward P/E has been as high as 5.37 and as low as 2.74, with a median of 3.90.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CMRE has a P/S ratio of 0.9. This compares to its industry's average P/S of 1.37.

Finally, investors will want to recognize that CMRE has a P/CF ratio of 2.95. 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. CMRE's P/CF compares to its industry's average P/CF of 7.72. CMRE's P/CF has been as high as 2.96 and as low as 1.22, with a median of 1.75, all within the past year.

These are only a few of the key metrics included in Costamare's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CMRE looks like an impressive value stock at the moment.


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