Are Investors Undervaluing Nippon Yusen Kabushiki Kaisha (NPNYY) 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.
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.
Nippon Yusen Kabushiki Kaisha (NPNYY) is a stock many investors are watching right now. NPNYY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 1.58. This compares to its industry's average Forward P/E of 4.37. Over the past year, NPNYY's Forward P/E has been as high as 3.01 and as low as 1.21, with a median of 1.87.
Another notable valuation metric for NPNYY is its P/B ratio of 1.24. 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. NPNYY's current P/B looks attractive when compared to its industry's average P/B of 1.31. Over the past year, NPNYY's P/B has been as high as 2.30 and as low as 1, with a median of 1.22.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NPNYY has a P/S ratio of 0.79. This compares to its industry's average P/S of 1.48.
Investors could also keep in mind ZIM Integrated Shipping Services (ZIM), an Transportation - Shipping stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
ZIM Integrated Shipping Services sports a P/B ratio of 1.96 as well; this compares to its industry's price-to-book ratio of 1.31. In the past 52 weeks, ZIM's P/B has been as high as 4.06, as low as -21.22, with a median of 1.82.
Value investors will likely look at more than just these metrics, but the above data helps show that Nippon Yusen Kabushiki Kaisha and ZIM Integrated Shipping Services are likely undervalued currently. And when considering the strength of its earnings outlook, NPNYY and ZIM sticks out as one of the market's strongest value stocks.
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Nippon Yusen Kabushiki Kaisha (NPNYY) : Free Stock Analysis Report
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