Should Value Investors Buy Costamare (CMRE) Stock?
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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Costamare (CMRE). CMRE is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.59. This compares to its industry's average Forward P/E of 14.32. CMRE's Forward P/E has been as high as 11.03 and as low as 5.42, with a median of 8.10, all within the past year.
Investors should also note that CMRE holds a PEG ratio of 1.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CMRE's industry currently sports an average PEG of 2.33. Within the past year, CMRE's PEG has been as high as 2.21 and as low as 1.08, with a median of 1.57.
We should also highlight that CMRE has a P/B ratio of 0.48. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 0.67. Over the past year, CMRE's P/B has been as high as 0.58 and as low as 0.34, with a median of 0.46.
Finally, investors should note that CMRE has a P/CF ratio of 3.39. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 6.39. CMRE's P/CF has been as high as 4.82 and as low as 2.55, with a median of 3.36, all within the past year.
These are only a few of the key metrics included in Costamare's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CMRE looks like an impressive value stock at the moment.
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