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Should Value Investors Buy These Transportation Stocks?
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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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Danaos (DAC - Free Report) . DAC is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 3.43. This compares to its industry's average Forward P/E of 4.14. DAC's Forward P/E has been as high as 5.30 and as low as 1.62, with a median of 3.83, all within the past year.
Investors should also recognize that DAC has a P/B ratio of 0.78. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 0.98. Within the past 52 weeks, DAC's P/B has been as high as 1.19 and as low as 0.36, with a median of 0.81.
Investors could also keep in mind Star Bulk Carriers (SBLK - Free Report) , an Transportation - Shipping stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Star Bulk Carriers sports a P/B ratio of 1.25 as well; this compares to its industry's price-to-book ratio of 0.98. In the past 52 weeks, SBLK's P/B has been as high as 1.47, as low as 0.48, with a median of 1.12.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Danaos and Star Bulk Carriers are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DAC and SBLK feels like a great value stock at the moment.
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Should Value Investors Buy These Transportation Stocks?
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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is Danaos (DAC - Free Report) . DAC is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 3.43. This compares to its industry's average Forward P/E of 4.14. DAC's Forward P/E has been as high as 5.30 and as low as 1.62, with a median of 3.83, all within the past year.
Investors should also recognize that DAC has a P/B ratio of 0.78. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 0.98. Within the past 52 weeks, DAC's P/B has been as high as 1.19 and as low as 0.36, with a median of 0.81.
Investors could also keep in mind Star Bulk Carriers (SBLK - Free Report) , an Transportation - Shipping stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Star Bulk Carriers sports a P/B ratio of 1.25 as well; this compares to its industry's price-to-book ratio of 0.98. In the past 52 weeks, SBLK's P/B has been as high as 1.47, as low as 0.48, with a median of 1.12.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Danaos and Star Bulk Carriers are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DAC and SBLK feels like a great value stock at the moment.