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Is Costamare (CMRE) Stock Undervalued Right Now?

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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.

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 use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 5.04, which compares to its industry's average of 7.47. Over the last 12 months, CMRE's Forward P/E has been as high as 5.78 and as low as 3.35, with a median of 4.25.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. 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 0.92. This compares to its industry's average P/S of 1.56.

Finally, we should also recognize that CMRE has a P/CF ratio of 3.04. 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 10. Over the past year, CMRE's P/CF has been as high as 3.79 and as low as 1.53, with a median of 2.31.

Investors could also keep in mind Euroseas (ESEA - Free Report) , an Transportation - Shipping stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.

Euroseas also has a P/B ratio of 1.02 compared to its industry's price-to-book ratio of 2.98. Over the past year, its P/B ratio has been as high as 1.08, as low as 0.68, with a median of 0.89.

Value investors will likely look at more than just these metrics, but the above data helps show that Costamare and Euroseas are likely undervalued currently. And when considering the strength of its earnings outlook, CMRE and ESEA sticks out as one of the market's strongest value stocks.


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