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

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 stock to keep an eye on is A.P. Moller-Maersk (AMKBY - Free Report) . AMKBY is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.

Another valuation metric that we should highlight is AMKBY's P/B ratio of 0.56. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.56. 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 0.57. This compares to its industry's average P/S of 1.54.

Finally, our model also underscores that AMKBY has a P/CF ratio of 2.39. 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 stock's P/CF looks attractive against its industry's average P/CF of 5.98. Over the past year, AMKBY's P/CF has been as high as 3.39 and as low as 1.65, with a median of 2.28.

These are only a few of the key metrics included in A.P. Moller-Maersk's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, AMKBY looks like an impressive value stock at the moment.


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