Should Value Investors Buy KNOT Offshore Partners (KNOP) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
KNOT Offshore Partners (KNOP) is a stock many investors are watching right now. KNOP is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. KNOP has a P/S ratio of 0.7. This compares to its industry's average P/S of 1.19.
Finally, investors should note that KNOP has a P/CF ratio of 2.21. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. KNOP's P/CF compares to its industry's average P/CF of 5.24. Within the past 12 months, KNOP's P/CF has been as high as 2.52 and as low as 1.02, with a median of 1.85.
Investors could also keep in mind Teekay Tankers (TNK), an Transportation - Shipping stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Teekay Tankers is trading at a forward earnings multiple of 5.90 at the moment, with a PEG ratio of 1.97. This compares to its industry's average P/E of 6.08 and average PEG ratio of 0.70.
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KNOT Offshore Partners LP (KNOP) : Free Stock Analysis Report
Teekay Tankers Ltd. (TNK) : Free Stock Analysis Report
