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Should Value Investors Buy KNOT Offshore Partners (KNOP) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 company to watch right now is KNOT Offshore Partners (KNOP - Free Report) . KNOP is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
Another notable valuation metric for KNOP is its P/B ratio of 0.45. Investors use the P/B ratio to look at a stock's market value versus 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 1.30. Over the past year, KNOP's P/B has been as high as 0.54 and as low as 0.35, with a median of 0.42.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. KNOP has a P/S ratio of 0.72. This compares to its industry's average P/S of 1.47.
Finally, our model also underscores that KNOP has a P/CF ratio of 1.87. 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. This stock's P/CF looks attractive against its industry's average P/CF of 4.54. Over the past year, KNOP's P/CF has been as high as 2.39 and as low as 1.43, with a median of 1.86.
Value investors will likely look at more than just these metrics, but the above data helps show that KNOT Offshore Partners is likely undervalued currently. And when considering the strength of its earnings outlook, KNOP sticks out as one of the market's strongest value stocks.
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Should Value Investors Buy KNOT Offshore Partners (KNOP) Stock?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 company to watch right now is KNOT Offshore Partners (KNOP - Free Report) . KNOP is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
Another notable valuation metric for KNOP is its P/B ratio of 0.45. Investors use the P/B ratio to look at a stock's market value versus 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 1.30. Over the past year, KNOP's P/B has been as high as 0.54 and as low as 0.35, with a median of 0.42.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. KNOP has a P/S ratio of 0.72. This compares to its industry's average P/S of 1.47.
Finally, our model also underscores that KNOP has a P/CF ratio of 1.87. 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. This stock's P/CF looks attractive against its industry's average P/CF of 4.54. Over the past year, KNOP's P/CF has been as high as 2.39 and as low as 1.43, with a median of 1.86.
Value investors will likely look at more than just these metrics, but the above data helps show that KNOT Offshore Partners is likely undervalued currently. And when considering the strength of its earnings outlook, KNOP sticks out as one of the market's strongest value stocks.