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Are Investors Undervaluing A.P. Moller-Maersk (AMKBY) Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 A.P. Moller-Maersk (AMKBY - Free Report) . AMKBY is currently sporting a Zacks Rank #2 (Buy) and an A for Value.

Investors should also recognize that AMKBY has a P/B ratio of 0.56. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. AMKBY's current P/B looks attractive when compared to its industry's average P/B of 1.51. AMKBY's P/B has been as high as 0.64 and as low as 0.39, with a median of 0.48, over the past year.

Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by 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. AMKBY has a P/S ratio of 0.55. This compares to its industry's average P/S of 1.41.

Finally, our model also underscores that AMKBY has a P/CF ratio of 2.39. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.74. Over the past 52 weeks, AMKBY's P/CF has been as high as 3.39 and as low as 1.65, with a median of 2.28.

If you're looking for another solid Transportation - Shipping value stock, take a look at Seanergy Maritime Holdings (SHIP - Free Report) . SHIP is a Zacks Rank of #2 (Buy) stock with a Value score of A.

Furthermore, Seanergy Maritime Holdings holds a P/B ratio of 0.69 and its industry's price-to-book ratio is 1.51. SHIP's P/B has been as high as 1.02, as low as 0.41, with a median of 0.55 over the past 12 months.

These are just a handful of the figures considered in A.P. Moller-Maersk and Seanergy Maritime Holdings'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 AMKBY and SHIP is an impressive value stock right now.


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