Is Costamare (CMRE) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Costamare (CMRE). CMRE is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 8.48. This compares to its industry's average Forward P/E of 15.73. Over the last 12 months, CMRE's Forward P/E has been as high as 11.03 and as low as 5.42, with a median of 8.
Investors should also note that CMRE holds a PEG ratio of 1.53. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CMRE's industry has an average PEG of 2.56 right now. Over the past 52 weeks, CMRE's PEG has been as high as 2.21 and as low as 1.08, with a median of 1.57.
We should also highlight that CMRE has a P/B ratio of 0.53. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 0.77. Within the past 52 weeks, CMRE's P/B has been as high as 0.55 and as low as 0.34, with a median of 0.46.
Finally, investors will want to recognize that CMRE has a P/CF ratio of 3.80. 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. CMRE's P/CF compares to its industry's average P/CF of 6.99. Within the past 12 months, CMRE's P/CF has been as high as 4.73 and as low as 2.55, with a median of 3.36.
Value investors will likely look at more than just these metrics, but the above data helps show that Costamare is likely undervalued currently. And when considering the strength of its earnings outlook, CMRE sticks out at as one of the market's strongest value stocks.
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