Are Investors Undervaluing KNOT Offshore Partners (KNOP) 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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 KNOT Offshore Partners (KNOP). KNOP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. KNOP has a P/S ratio of 0.71. This compares to its industry's average P/S of 1.07.
Finally, investors should note that KNOP has a P/CF ratio of 2.10. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. KNOP's P/CF compares to its industry's average P/CF of 3.61. Within the past 12 months, KNOP's P/CF has been as high as 3.29 and as low as 1.02, with a median of 1.87.
Another great Transportation - Shipping stock you could consider is Teekay Tankers (TNK), which is a # 1 (Strong Buy) stock with a Value Score of A.
Shares of Teekay Tankers currently holds a Forward P/E ratio of 5.51, and its PEG ratio is 1.84. In comparison, its industry sports average P/E and PEG ratios of 6.24 and 0.35.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
KNOT Offshore Partners LP (KNOP) : Free Stock Analysis Report
Teekay Tankers Ltd. (TNK) : Free Stock Analysis Report
