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Is Safe Bulkers (SB) Stock Undervalued Right Now?

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Safe Bulkers (SB - Free Report) . SB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 3.43 right now. For comparison, its industry sports an average P/E of 4.50. Over the past year, SB's Forward P/E has been as high as 6.65 and as low as 2.68, with a median of 3.67.

Investors should also recognize that SB has a P/B ratio of 0.76. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. SB's current P/B looks attractive when compared to its industry's average P/B of 1.16. SB's P/B has been as high as 1.12 and as low as 0.49, with a median of 0.77, over the past year.

Finally, our model also underscores that SB has a P/CF ratio of 2.26. 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. SB's current P/CF looks attractive when compared to its industry's average P/CF of 3.99. Over the past 52 weeks, SB's P/CF has been as high as 6.14 and as low as 1.72, with a median of 2.50.

Another great Transportation - Shipping stock you could consider is ZIM Integrated Shipping Services (ZIM - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

ZIM Integrated Shipping Services also has a P/B ratio of 1.44 compared to its industry's price-to-book ratio of 1.16. Over the past year, its P/B ratio has been as high as 4.06, as low as -21.22, with a median of 1.79.

Value investors will likely look at more than just these metrics, but the above data helps show that Safe Bulkers and ZIM Integrated Shipping Services are likely undervalued currently. And when considering the strength of its earnings outlook, SB and ZIM sticks out as one of the market's strongest value stocks.


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