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Are These Transportation Stocks a Great Value Stocks Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on 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 3.13. This compares to its industry's average Forward P/E of 4.49. Over the past 52 weeks, DAC's Forward P/E has been as high as 5.30 and as low as 2.60, with a median of 3.84.
We should also highlight that DAC has a P/B ratio of 1. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. DAC's current P/B looks attractive when compared to its industry's average P/B of 1.24. Within the past 52 weeks, DAC's P/B has been as high as 1.19 and as low as 0.70, with a median of 0.86.
Finally, we should also recognize that DAC has a P/CF ratio of 1.64. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. DAC's current P/CF looks attractive when compared to its industry's average P/CF of 5.50. Over the past 52 weeks, DAC's P/CF has been as high as 4.06 and as low as 1.23, with a median of 1.70.
If you're looking for another solid Transportation - Shipping value stock, take a look at ZIM Integrated Shipping Services (ZIM - Free Report) . ZIM is a # 1 (Strong Buy) stock with a Value score of A.
Additionally, ZIM Integrated Shipping Services has a P/B ratio of 2.69 while its industry's price-to-book ratio sits at 1.24. For ZIM, this valuation metric has been as high as 11.79, as low as -21.22, with a median of 2.07 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Danaos and ZIM Integrated Shipping Services are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DAC and ZIM feels like a great value stock at the moment.
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Are These Transportation Stocks a Great Value Stocks Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on 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 3.13. This compares to its industry's average Forward P/E of 4.49. Over the past 52 weeks, DAC's Forward P/E has been as high as 5.30 and as low as 2.60, with a median of 3.84.
We should also highlight that DAC has a P/B ratio of 1. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. DAC's current P/B looks attractive when compared to its industry's average P/B of 1.24. Within the past 52 weeks, DAC's P/B has been as high as 1.19 and as low as 0.70, with a median of 0.86.
Finally, we should also recognize that DAC has a P/CF ratio of 1.64. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. DAC's current P/CF looks attractive when compared to its industry's average P/CF of 5.50. Over the past 52 weeks, DAC's P/CF has been as high as 4.06 and as low as 1.23, with a median of 1.70.
If you're looking for another solid Transportation - Shipping value stock, take a look at ZIM Integrated Shipping Services (ZIM - Free Report) . ZIM is a # 1 (Strong Buy) stock with a Value score of A.
Additionally, ZIM Integrated Shipping Services has a P/B ratio of 2.69 while its industry's price-to-book ratio sits at 1.24. For ZIM, this valuation metric has been as high as 11.79, as low as -21.22, with a median of 2.07 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Danaos and ZIM Integrated Shipping Services are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DAC and ZIM feels like a great value stock at the moment.