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Is Knot Offshore (KNOP) a Great Value Stock 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.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Knot Offshore (KNOP - Free Report) is a stock many investors are watching right now. KNOP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 6.67, while its industry has an average P/E of 13.47. Over the past 52 weeks, KNOP's Forward P/E has been as high as 10.41 and as low as 6.62, with a median of 8.85.

Finally, we should also recognize that KNOP has a P/CF ratio of 3.31. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. KNOP's current P/CF looks attractive when compared to its industry's average P/CF of 9.84. Within the past 12 months, KNOP's P/CF has been as high as 5.02 and as low as 3.17, with a median of 4.16.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Knot Offshore is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KNOP feels like a great value stock at the moment.




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