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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Safe Bulkers (SB) is a stock many investors are watching right now. SB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 4.09, which compares to its industry's average of 5.83. Over the past year, SB's Forward P/E has been as high as 4.92 and as low as 2.01, with a median of 3.69.
Another valuation metric that we should highlight is SB's P/B ratio of 0.46. 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 1.15. Within the past 52 weeks, SB's P/B has been as high as 0.61 and as low as 0.40, with a median of 0.49.
Finally, our model also underscores that SB has a P/CF ratio of 2.06. 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. This stock's P/CF looks attractive against its industry's average P/CF of 3.47. SB's P/CF has been as high as 2.23 and as low as 1.25, with a median of 1.88, all within the past year.
Investors could also keep in mind Teekay Tankers (TNK), an Transportation - Shipping stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Teekay Tankers currently holds a Forward P/E ratio of 4.14, and its PEG ratio is 1.38. In comparison, its industry sports average P/E and PEG ratios of 5.83 and 0.33.
Over the last 12 months, TNK's P/E has been as high as 7.83, as low as 1.98, with a median of 4.06, and its PEG ratio has been as high as 2.61, as low as 0.66, with a median of 1.35.
Teekay Tankers sports a P/B ratio of 1 as well; this compares to its industry's price-to-book ratio of 1.15. In the past 52 weeks, TNK's P/B has been as high as 1.51, as low as 0.85, with a median of 1.09.
These are only a few of the key metrics included in Safe Bulkers and Teekay Tankers strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, SB and TNK look like an impressive value stock at the moment.
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Safe Bulkers, Inc (SB) : Free Stock Analysis Report
Teekay Tankers Ltd. (TNK) : Free Stock Analysis Report
