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Is Nippon Yusen Kabushiki Kaisha (NPNYY) Stock Undervalued 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.

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 company to watch right now is Nippon Yusen Kabushiki Kaisha (NPNYY). NPNYY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.

Investors should also recognize that NPNYY has a P/B ratio of 1.08. The P/B ratio is used to compare a stock's market value with 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. NPNYY's P/B has been as high as 2.30 and as low as 1, with a median of 1.22, over the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 0.73. This compares to its industry's average P/S of 1.63.

Safe Bulkers (SB) may be another strong Transportation - Shipping stock to add to your shortlist. SB is a # 2 (Buy) stock with a Value grade of A.

Additionally, Safe Bulkers has a P/B ratio of 0.76 while its industry's price-to-book ratio sits at 1.15. For SB, this valuation metric has been as high as 1.12, as low as 0.58, with a median of 0.79 over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Nippon Yusen Kabushiki Kaisha and Safe Bulkers are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NPNYY and SB feels like a great value stock at the moment.


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