Back to top

Image: Bigstock

Is Costamare (CMRE) Stock Undervalued Right Now?

Read MoreHide Full Article

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.

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 #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 5.61, which compares to its industry's average of 6.65. Over the last 12 months, CMRE's Forward P/E has been as high as 8.68 and as low as 4.45, with a median of 6.09.

Another notable valuation metric for CMRE is its P/B ratio of 0.94. 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. CMRE's current P/B looks attractive when compared to its industry's average P/B of 2.45. Over the past year, CMRE's P/B has been as high as 1.02 and as low as 0.37, with a median of 0.63.

These are just a handful of the figures considered in Costamare's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CMRE is an impressive value stock right now.


See More Zacks Research for These Tickers


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


Costamare Inc. (CMRE) - free report >>

Published in