Is Teekay Tankers (TNK) a Great Value Stock Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company value investors might notice is Teekay Tankers (TNK). TNK is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 5.50, while its industry has an average P/E of 5.99. TNK's Forward P/E has been as high as 5.84 and as low as 1.98, with a median of 4.05, all within the past year.
Finally, we should also recognize that TNK has a P/CF ratio of 2.67. 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 3.68. TNK's P/CF has been as high as 8.35 and as low as 2.02, with a median of 2.69, all within the past year.
Investors could also keep in mind Tsakos Energy Navigation (TNP), an Transportation - Shipping stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Tsakos Energy Navigation also has a P/B ratio of 0.38 compared to its industry's price-to-book ratio of 1.13. Over the past year, its P/B ratio has been as high as 0.48, as low as 0.30, with a median of 0.38.
These are just a handful of the figures considered in Teekay Tankers and Tsakos Energy Navigation's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that TNK and TNP is an impressive value stock right now.
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Teekay Tankers Ltd. (TNK) : Free Stock Analysis Report
Tsakos Energy Navigation Ltd (TNP) : Free Stock Analysis Report
