Back to top

Image: Bigstock

Is Costamare (CMRE) Stock Undervalued Right Now?

Read MoreHide Full Article

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.

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 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.

One company to watch right now is Costamare (CMRE - Free Report) . CMRE is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.90, which compares to its industry's average of 11.18. CMRE's Forward P/E has been as high as 11.03 and as low as 5.42, with a median of 8.07, all within the past year.

We also note that CMRE holds a PEG ratio of 1.53. 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 currently sports an average PEG of 1.84. Over the past 52 weeks, CMRE's PEG has been as high as 2.21 and as low as 1.08, with a median of 1.58.

Investors should also recognize that CMRE has a P/B ratio of 0.70. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. CMRE's current P/B looks attractive when compared to its industry's average P/B of 0.79. Within the past 52 weeks, CMRE's P/B has been as high as 0.70 and as low as 0.34, with a median of 0.47.

Finally, our model also underscores that CMRE has a P/CF ratio of 4.54. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 7.15. Within the past 12 months, CMRE's P/CF has been as high as 4.55 and as low as 2.76, with a median of 3.60.

These are only a few of the key metrics included in Costamare'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, CMRE looks like an impressive value stock at the moment.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Costamare Inc. (CMRE) - free report >>

Published in