Back to top

Image: Bigstock

Should Value Investors Buy Nippon Yusen Kabushiki Kaisha (NPNYY) Stock?

Read MoreHide Full Article

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.

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.

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 value investors might notice is Nippon Yusen Kabushiki Kaisha (NPNYY - Free Report) . NPNYY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Another valuation metric that we should highlight is NPNYY's P/B ratio of 0.99. 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 solid versus its industry's average P/B of 1.11. Over the past year, NPNYY's P/B has been as high as 2.30 and as low as 0.99, with a median of 1.21.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NPNYY has a P/S ratio of 0.62. This compares to its industry's average P/S of 1.39.

If you're looking for another solid Transportation - Shipping value stock, take a look at Safe Bulkers (SB - Free Report) . SB is a # 2 (Buy) stock with a Value score of A.

Furthermore, Safe Bulkers holds a P/B ratio of 0.70 and its industry's price-to-book ratio is 1.11. SB's P/B has been as high as 1.12, as low as 0.58, with a median of 0.76 over the past 12 months.

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


See More Zacks Research for These Tickers


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


Safe Bulkers, Inc (SB) - free report >>

Nippon Yusen Kabushiki Kaisha (NPNYY) - free report >>

Published in