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Should Value Investors Buy Costamare (CMRE) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Costamare (CMRE - Free Report) is a stock many investors are watching right now. CMRE is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.22, which compares to its industry's average of 14.32. Over the last 12 months, CMRE's Forward P/E has been as high as 11.07 and as low as 5.42, with a median of 8.33.

Investors should also note that CMRE holds a PEG ratio of 1.44. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CMRE's industry has an average PEG of 2.38 right now. CMRE's PEG has been as high as 2.21 and as low as 1.08, with a median of 1.60, all within the past year.

We should also highlight that CMRE has a P/B ratio of 0.45. Investors use the P/B ratio to look at a stock's market value versus 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 0.75. Over the past 12 months, CMRE's P/B has been as high as 0.58 and as low as 0.34, with a median of 0.46.

Finally, we should also recognize that CMRE has a P/CF ratio of 3.43. 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. CMRE's P/CF compares to its industry's average P/CF of 7.70. CMRE's P/CF has been as high as 4.85 and as low as 2.76, with a median of 3.67, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Costamare is likely undervalued currently. And when considering the strength of its earnings outlook, CMRE sticks out at as one of the market's strongest value stocks.


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