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 Danaos (DAC) Right Now?
Read MoreHide Full Article
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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Danaos (DAC - Free Report) is a stock many investors are watching right now. DAC is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 2.08, while its industry has an average P/E of 4.70. Over the last 12 months, DAC's Forward P/E has been as high as 3.15 and as low as 1.88, with a median of 2.23.
Another valuation metric that we should highlight is DAC's P/B ratio of 0.45. The P/B is a method of comparing a stock's market value to 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 0.98. Over the past year, DAC's P/B has been as high as 0.73 and as low as 0.41, with a median of 0.48.
Finally, we should also recognize that DAC has a P/CF ratio of 2.50. 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. DAC's current P/CF looks attractive when compared to its industry's average P/CF of 2.61. Over the past 52 weeks, DAC's P/CF has been as high as 2.61 and as low as 1.07, with a median of 1.72.
Investors could also keep in mind GasLog Partners , an Transportation - Shipping stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
GasLog Partners sports a P/B ratio of 0.63 as well; this compares to its industry's price-to-book ratio of 0.98. In the past 52 weeks, GLOP's P/B has been as high as 0.71, as low as 0.41, with a median of 0.58.
Value investors will likely look at more than just these metrics, but the above data helps show that Danaos and GasLog Partners are likely undervalued currently. And when considering the strength of its earnings outlook, DAC and GLOP 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:
Image: Bigstock
Are Investors Undervaluing Danaos (DAC) 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Danaos (DAC - Free Report) is a stock many investors are watching right now. DAC is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 2.08, while its industry has an average P/E of 4.70. Over the last 12 months, DAC's Forward P/E has been as high as 3.15 and as low as 1.88, with a median of 2.23.
Another valuation metric that we should highlight is DAC's P/B ratio of 0.45. The P/B is a method of comparing a stock's market value to 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 0.98. Over the past year, DAC's P/B has been as high as 0.73 and as low as 0.41, with a median of 0.48.
Finally, we should also recognize that DAC has a P/CF ratio of 2.50. 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. DAC's current P/CF looks attractive when compared to its industry's average P/CF of 2.61. Over the past 52 weeks, DAC's P/CF has been as high as 2.61 and as low as 1.07, with a median of 1.72.
Investors could also keep in mind GasLog Partners , an Transportation - Shipping stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
GasLog Partners sports a P/B ratio of 0.63 as well; this compares to its industry's price-to-book ratio of 0.98. In the past 52 weeks, GLOP's P/B has been as high as 0.71, as low as 0.41, with a median of 0.58.
Value investors will likely look at more than just these metrics, but the above data helps show that Danaos and GasLog Partners are likely undervalued currently. And when considering the strength of its earnings outlook, DAC and GLOP sticks out as one of the market's strongest value stocks.