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Should Value Investors Buy Costamare (CMRE) 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, 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.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice 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 is trading with P/E ratio of 5.43 right now. For comparison, its industry sports an average P/E of 7.97. Over the past year, CMRE's Forward P/E has been as high as 5.78 and as low as 3.35, with a median of 4.13.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CMRE has a P/S ratio of 1.04. This compares to its industry's average P/S of 1.42.

Finally, investors should note that CMRE has a P/CF ratio of 3.56. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.52. Over the past 52 weeks, CMRE's P/CF has been as high as 3.79 and as low as 1.53, with a median of 2.10.

Another great Transportation - Shipping stock you could consider is International Seaways (INSW - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

International Seaways sports a P/B ratio of 1.60 as well; this compares to its industry's price-to-book ratio of 2.72. In the past 52 weeks, INSW's P/B has been as high as 1.78, as low as 1.09, with a median of 1.43.

These are just a handful of the figures considered in Costamare and International Seaways'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 CMRE and INSW is an impressive value stock right now.

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