Should Value Investors Buy Star Bulk Carriers (SBLK) Stock?
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Star Bulk Carriers (SBLK) is a stock many investors are watching right now. SBLK is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 3.99, while its industry has an average P/E of 10.69. Over the past 52 weeks, SBLK's Forward P/E has been as high as 12.40 and as low as 3.70, with a median of 6.01.
Investors should also recognize that SBLK has a P/B ratio of 0.66. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. SBLK's current P/B looks attractive when compared to its industry's average P/B of 0.76. Over the past 12 months, SBLK's P/B has been as high as 0.72 and as low as 0.39, with a median of 0.55.
Value investors will likely look at more than just these metrics, but the above data helps show that Star Bulk Carriers is likely undervalued currently. And when considering the strength of its earnings outlook, SBLK sticks out at as one of the market's strongest value stocks.
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Star Bulk Carriers Corp. (SBLK) : Free Stock Analysis Report
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