We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing Grindrod Shipping (GRIN) Right Now?
Read MoreHide Full Article
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 value investors might notice is Grindrod Shipping (GRIN - Free Report) . GRIN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 3.52 right now. For comparison, its industry sports an average P/E of 3.78. Over the last 12 months, GRIN's Forward P/E has been as high as 8.08 and as low as 2.36, with a median of 3.70.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GRIN has a P/S ratio of 0.71. This compares to its industry's average P/S of 1.38.
Finally, investors will want to recognize that GRIN has a P/CF ratio of 1.84. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 3.23. GRIN's P/CF has been as high as 2.93 and as low as 1.59, with a median of 2.27, all within the past year.
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.
Furthermore, ZIM Integrated Shipping Services holds a P/B ratio of 1.40 and its industry's price-to-book ratio is 1.13. ZIM's P/B has been as high as 4.06, as low as -21.22, with a median of 1.83 over the past 12 months.
These are only a few of the key metrics included in Grindrod Shipping and ZIM Integrated Shipping Services strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, GRIN and ZIM look like an impressive value stock at the moment.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are Investors Undervaluing Grindrod Shipping (GRIN) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 value investors might notice is Grindrod Shipping (GRIN - Free Report) . GRIN is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 3.52 right now. For comparison, its industry sports an average P/E of 3.78. Over the last 12 months, GRIN's Forward P/E has been as high as 8.08 and as low as 2.36, with a median of 3.70.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GRIN has a P/S ratio of 0.71. This compares to its industry's average P/S of 1.38.
Finally, investors will want to recognize that GRIN has a P/CF ratio of 1.84. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 3.23. GRIN's P/CF has been as high as 2.93 and as low as 1.59, with a median of 2.27, all within the past year.
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.
Furthermore, ZIM Integrated Shipping Services holds a P/B ratio of 1.40 and its industry's price-to-book ratio is 1.13. ZIM's P/B has been as high as 4.06, as low as -21.22, with a median of 1.83 over the past 12 months.
These are only a few of the key metrics included in Grindrod Shipping and ZIM Integrated Shipping Services strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, GRIN and ZIM look like an impressive value stock at the moment.