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Is Capital Product Partners (CPLP) a Great Value Stock Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.
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 value investors might notice is Capital Product Partners (CPLP - Free Report) . CPLP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 3.17, while its industry has an average P/E of 3.86. Over the past 52 weeks, CPLP's Forward P/E has been as high as 6.60 and as low as 2.76, with a median of 3.69.
Another valuation metric that we should highlight is CPLP's P/B ratio of 0.55. 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 1.21. Within the past 52 weeks, CPLP's P/B has been as high as 0.70 and as low as 0.46, with a median of 0.56.
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. CPLP has a P/S ratio of 1.14. This compares to its industry's average P/S of 1.3.
Finally, investors should note that CPLP has a P/CF ratio of 1.78. 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. This stock's P/CF looks attractive against its industry's average P/CF of 3.28. Over the past year, CPLP's P/CF has been as high as 2.59 and as low as 1.53, with a median of 1.90.
Danaos (DAC - Free Report) may be another strong Transportation - Shipping stock to add to your shortlist. DAC is a # 2 (Buy) stock with a Value grade of A.
Danaos also has a P/B ratio of 0.66 compared to its industry's price-to-book ratio of 1.21. Over the past year, its P/B ratio has been as high as 1.06, as low as 0.49, with a median of 0.78.
These are only a few of the key metrics included in Capital Product Partners and Danaos strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CPLP and DAC look like an impressive value stock at the moment.
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Is Capital Product Partners (CPLP) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.
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 value investors might notice is Capital Product Partners (CPLP - Free Report) . CPLP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 3.17, while its industry has an average P/E of 3.86. Over the past 52 weeks, CPLP's Forward P/E has been as high as 6.60 and as low as 2.76, with a median of 3.69.
Another valuation metric that we should highlight is CPLP's P/B ratio of 0.55. 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 1.21. Within the past 52 weeks, CPLP's P/B has been as high as 0.70 and as low as 0.46, with a median of 0.56.
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. CPLP has a P/S ratio of 1.14. This compares to its industry's average P/S of 1.3.
Finally, investors should note that CPLP has a P/CF ratio of 1.78. 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. This stock's P/CF looks attractive against its industry's average P/CF of 3.28. Over the past year, CPLP's P/CF has been as high as 2.59 and as low as 1.53, with a median of 1.90.
Danaos (DAC - Free Report) may be another strong Transportation - Shipping stock to add to your shortlist. DAC is a # 2 (Buy) stock with a Value grade of A.
Danaos also has a P/B ratio of 0.66 compared to its industry's price-to-book ratio of 1.21. Over the past year, its P/B ratio has been as high as 1.06, as low as 0.49, with a median of 0.78.
These are only a few of the key metrics included in Capital Product Partners and Danaos strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CPLP and DAC look like an impressive value stock at the moment.