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Should Value Investors Buy Teekay Tankers (TNK) Stock?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 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.
Teekay Tankers (TNK - Free Report) is a stock many investors are watching right now. TNK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors should also recognize that TNK has a P/B ratio of 0.57. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. TNK's current P/B looks attractive when compared to its industry's average P/B of 0.86. Over the past year, TNK's P/B has been as high as 0.88 and as low as 0.26, with a median of 0.39.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TNK has a P/S ratio of 0.54. This compares to its industry's average P/S of 0.61.
Finally, investors should note that TNK has a P/CF ratio of 3.43. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.95. Over the past year, TNK's P/CF has been as high as 7.28 and as low as 2.35, with a median of 3.24.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Teekay Tankers is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TNK feels like a great value stock at the moment.
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Should Value Investors Buy Teekay Tankers (TNK) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 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.
Teekay Tankers (TNK - Free Report) is a stock many investors are watching right now. TNK is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors should also recognize that TNK has a P/B ratio of 0.57. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. TNK's current P/B looks attractive when compared to its industry's average P/B of 0.86. Over the past year, TNK's P/B has been as high as 0.88 and as low as 0.26, with a median of 0.39.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. TNK has a P/S ratio of 0.54. This compares to its industry's average P/S of 0.61.
Finally, investors should note that TNK has a P/CF ratio of 3.43. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.95. Over the past year, TNK's P/CF has been as high as 7.28 and as low as 2.35, with a median of 3.24.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Teekay Tankers is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, TNK feels like a great value stock at the moment.