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Are Investors Undervaluing Safe Bulkers (SB) 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Safe Bulkers (SB). SB is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 3.37 right now. For comparison, its industry sports an average P/E of 4.26. SB's Forward P/E has been as high as 4.73 and as low as 2.68, with a median of 3.49, all within the past year.

Another valuation metric that we should highlight is SB's P/B ratio of 0.78. 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. This stock's P/B looks solid versus its industry's average P/B of 1.23. Over the past year, SB's P/B has been as high as 1.12 and as low as 0.58, with a median of 0.77.

Finally, we should also recognize that SB has a P/CF ratio of 2.29. 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 stock's P/CF looks attractive against its industry's average P/CF of 3.28. Within the past 12 months, SB's P/CF has been as high as 6.13 and as low as 1.72, with a median of 2.39.

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.

Furthermore, ZIM Integrated Shipping Services holds a P/B ratio of 1.82 and its industry's price-to-book ratio is 1.23. ZIM's P/B has been as high as 4.06, as low as -21.22, with a median of 1.81 over the past 12 months.

Value investors will likely look at more than just these metrics, but the above data helps show that Safe Bulkers and ZIM Integrated Shipping Services are likely undervalued currently. And when considering the strength of its earnings outlook, SB and ZIM sticks out as one of the market's strongest value stocks.


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Safe Bulkers, Inc (SB) : Free Stock Analysis Report
 
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