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Is KNOT Offshore Partners (KNOP) Stock Undervalued 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

KNOT Offshore Partners (KNOP - Free Report) is a stock many investors are watching right now. KNOP is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.

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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. KNOP has a P/S ratio of 0.74. This compares to its industry's average P/S of 1.29.

Finally, investors should note that KNOP has a P/CF ratio of 2.34. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 5.43. KNOP's P/CF has been as high as 2.54 and as low as 1.02, with a median of 1.87, all within the past year.

Investors could also keep in mind Pangaea Logistics Solutions (PANL - Free Report) , an Transportation - Shipping stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.

Furthermore, Pangaea Logistics Solutions holds a P/B ratio of 0.98 and its industry's price-to-book ratio is 1.30. PANL's P/B has been as high as 1.01, as low as 0.64, with a median of 0.77 over the past 12 months.

Value investors will likely look at more than just these metrics, but the above data helps show that KNOT Offshore Partners and Pangaea Logistics Solutions are likely undervalued currently. And when considering the strength of its earnings outlook, KNOP and PANL sticks out as one of the market's strongest value stocks.


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