Should Value Investors Buy Danaos (DAC) Stock?
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
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 has a Forward P/E ratio of 2.40. This compares to its industry's average Forward P/E of 5.16. Over the last 12 months, DAC's Forward P/E has been as high as 3.15 and as low as 1.88, with a median of 2.20.
Investors should also recognize that DAC has a P/B ratio of 0.52. 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 1.03. DAC's P/B has been as high as 0.68 and as low as 0.41, with a median of 0.47, over the past year.
Tsakos Energy Navigation (TNP) may be another strong Transportation - Shipping stock to add to your shortlist. TNP is a # 2 (Buy) stock with a Value grade of A.
Tsakos Energy Navigation also has a P/B ratio of 0.36 compared to its industry's price-to-book ratio of 1.03. Over the past year, its P/B ratio has been as high as 0.48, as low as 0.12, with a median of 0.34.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Danaos and Tsakos Energy Navigation are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DAC and TNP feels like a great value stock at the moment.
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Danaos Corporation (DAC) : Free Stock Analysis Report
Tsakos Energy Navigation Ltd (TNP) : Free Stock Analysis Report
