Back to top

Image: Bigstock

Is A.P. Moller-Maersk (AMKBY) Stock Undervalued Right Now?

Read MoreHide Full Article

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.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 value investors might notice 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.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. AMKBY has a P/S ratio of 0.72. This compares to its industry's average P/S of 2.01.

Another great Transportation - Shipping stock you could consider is China Cosco (CICOY - Free Report) , which is a Zacks Rank of #2 (Buy) stock with a Value Score of A.

Furthermore, China Cosco holds a P/B ratio of 0.71 and its industry's price-to-book ratio is 2.09. CICOY's P/B has been as high as 0.79, as low as 0.52, with a median of 0.66 over the past 12 months.

These figures are just a handful of the metrics value investors tend to look at, but they help show that A.P. Moller-Maersk and China Cosco are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, AMKBY and CICOY feels like a great value stock at the moment.

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in