U.S. markets close in 3 hours 41 minutes
  • S&P 500

    3,935.20
    -6.06 (-0.15%)
     
  • Dow 30

    33,625.15
    +28.81 (+0.09%)
     
  • Nasdaq

    10,960.02
    -54.87 (-0.50%)
     
  • Russell 2000

    1,814.49
    +1.91 (+0.11%)
     
  • Crude Oil

    72.85
    -1.40 (-1.89%)
     
  • Gold

    1,794.00
    +11.60 (+0.65%)
     
  • Silver

    22.83
    +0.50 (+2.22%)
     
  • EUR/USD

    1.0513
    +0.0044 (+0.42%)
     
  • 10-Yr Bond

    3.4600
    -0.0530 (-1.51%)
     
  • GBP/USD

    1.2207
    +0.0074 (+0.61%)
     
  • USD/JPY

    136.4590
    -0.5010 (-0.37%)
     
  • BTC-USD

    16,816.48
    -167.49 (-0.99%)
     
  • CMC Crypto 200

    394.72
    -7.32 (-1.82%)
     
  • FTSE 100

    7,489.19
    -32.20 (-0.43%)
     
  • Nikkei 225

    27,686.40
    -199.47 (-0.72%)
     

Are These Transportation Stocks a Great Value Stocks Right Now?

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Danaos (DAC). DAC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 3.06, while its industry has an average P/E of 4.32. Over the past 52 weeks, DAC's Forward P/E has been as high as 5.30 and as low as 2.60, with a median of 3.84.

Another valuation metric that we should highlight is DAC's P/B ratio of 0.90. The P/B ratio pits a stock's market value against 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 1.14. DAC's P/B has been as high as 1.19 and as low as 0.70, with a median of 0.88, over the past year.

Finally, investors will want to recognize that DAC has a P/CF ratio of 1.60. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. DAC's current P/CF looks attractive when compared to its industry's average P/CF of 3.93. Over the past year, DAC's P/CF has been as high as 2.93 and as low as 1.23, with a median of 1.67.

Another great Transportation - Shipping stock you could consider is Grindrod Shipping (GRIN), which is a # 2 (Buy) stock with a Value Score of A.

Furthermore, Grindrod Shipping holds a P/B ratio of 1.39 and its industry's price-to-book ratio is 1.14. GRIN's P/B has been as high as 1.61, as low as 0.51, with a median of 0.95 over the past 12 months.

These are only a few of the key metrics included in Danaos and Grindrod Shipping strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, DAC and GRIN look like an impressive value stock at the moment.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Danaos Corporation (DAC) : Free Stock Analysis Report
 
Grindrod Shipping Holdings Ltd. (GRIN) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.