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Are Investors Undervaluing Costamare (CMRE) 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.
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 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 stock to keep an eye on is Costamare (CMRE - Free Report) . CMRE is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 4.57, which compares to its industry's average of 7.18. CMRE's Forward P/E has been as high as 5.53 and as low as 2.68, with a median of 4.24, all within the past year.
We should also highlight that CMRE has a P/B ratio of 0.73. 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. CMRE's current P/B looks attractive when compared to its industry's average P/B of 1.54. CMRE's P/B has been as high as 0.76 and as low as 0.32, with a median of 0.56, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CMRE has a P/S ratio of 0.84. This compares to its industry's average P/S of 1.49.
Finally, investors should note that CMRE has a P/CF ratio of 3.02. 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. CMRE's P/CF compares to its industry's average P/CF of 5.92. Within the past 12 months, CMRE's P/CF has been as high as 3.33 and as low as 1.62, with a median of 2.57.
Investors could also keep in mind Seanergy Maritime Holdings (SHIP - Free Report) , another Transportation - Shipping stock with a Zacks Rank of #2 (Buy) and Value grade of A.
Additionally, Seanergy Maritime Holdings has a P/B ratio of 0.69 while its industry's price-to-book ratio sits at 1.54. For SHIP, this valuation metric has been as high as 1.02, as low as 0.41, with a median of 0.55 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Costamare and Seanergy Maritime Holdings are likely undervalued currently. And when considering the strength of its earnings outlook, CMRE and SHIP sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Costamare (CMRE) Right Now?
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.
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 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 stock to keep an eye on is Costamare (CMRE - Free Report) . CMRE is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 4.57, which compares to its industry's average of 7.18. CMRE's Forward P/E has been as high as 5.53 and as low as 2.68, with a median of 4.24, all within the past year.
We should also highlight that CMRE has a P/B ratio of 0.73. 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. CMRE's current P/B looks attractive when compared to its industry's average P/B of 1.54. CMRE's P/B has been as high as 0.76 and as low as 0.32, with a median of 0.56, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CMRE has a P/S ratio of 0.84. This compares to its industry's average P/S of 1.49.
Finally, investors should note that CMRE has a P/CF ratio of 3.02. 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. CMRE's P/CF compares to its industry's average P/CF of 5.92. Within the past 12 months, CMRE's P/CF has been as high as 3.33 and as low as 1.62, with a median of 2.57.
Investors could also keep in mind Seanergy Maritime Holdings (SHIP - Free Report) , another Transportation - Shipping stock with a Zacks Rank of #2 (Buy) and Value grade of A.
Additionally, Seanergy Maritime Holdings has a P/B ratio of 0.69 while its industry's price-to-book ratio sits at 1.54. For SHIP, this valuation metric has been as high as 1.02, as low as 0.41, with a median of 0.55 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Costamare and Seanergy Maritime Holdings are likely undervalued currently. And when considering the strength of its earnings outlook, CMRE and SHIP sticks out as one of the market's strongest value stocks.