Are Investors Undervaluing Danaos (DAC) Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Danaos (DAC). DAC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 2.20 right now. For comparison, its industry sports an average P/E of 5.66. DAC's Forward P/E has been as high as 2.49 and as low as 1.88, with a median of 2.20, all within the past year.
Another notable valuation metric for DAC is its P/B ratio of 0.48. 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 stock's P/B looks solid versus its industry's average P/B of 1.10. Within the past 52 weeks, DAC's P/B has been as high as 0.62 and as low as 0.41, with a median of 0.47.
Finally, investors should note that DAC has a P/CF ratio of 2.10. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 2.80. Over the past year, DAC's P/CF has been as high as 2.80 and as low as 1.37, with a median of 1.79.
If you're looking for another solid Transportation - Shipping value stock, take a look at Teekay Tankers (TNK). TNK is a # 1 (Strong Buy) stock with a Value score of A.
Teekay Tankers is currently trading with a Forward P/E ratio of 4.32 while its PEG ratio sits at 1.44. Both of the company's metrics compare favorably to its industry's average P/E of 5.66 and average PEG ratio of 0.32.
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Danaos Corporation (DAC) : Free Stock Analysis Report
Teekay Tankers Ltd. (TNK) : Free Stock Analysis Report
