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Is Seacor (CKH) Stock Undervalued 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One company to watch right now is Seacor (CKH - Free Report) . CKH is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Investors should also recognize that CKH has a P/B ratio of 1.01. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.29. CKH's P/B has been as high as 1.21 and as low as 0.76, with a median of 0.93, over the past year.

Finally, investors will want to recognize that CKH has a P/CF ratio of 6.87. 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 8.65. Within the past 12 months, CKH's P/CF has been as high as 6.87 and as low as 3.08, with a median of 5.67.

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


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