Advertisement
Singapore markets close in 3 hours 1 minute

  • Straits Times Index

    3,301.64
    +28.92 (+0.88%)
     

  • Nikkei

    38,368.07
    +815.91 (+2.17%)
     

  • Hang Seng

    17,185.19
    +356.26 (+2.12%)
     

  • FTSE 100

    8,044.81
    +20.94 (+0.26%)
     

  • Bitcoin USD

    66,770.65
    +233.45 (+0.35%)
     

  • CMC Crypto 200

    1,438.29
    +23.53 (+1.66%)
     

  • S&P 500

    5,070.55
    +59.95 (+1.20%)
     

  • Dow

    38,503.69
    +263.71 (+0.69%)
     

  • Nasdaq

    15,696.64
    +245.33 (+1.59%)
     

  • Gold

    2,341.70
    -0.40 (-0.02%)
     

  • Crude Oil

    83.51
    +0.15 (+0.18%)
     

  • 10-Yr Bond

    4.5980
    -0.0520 (-1.12%)
     

  • FTSE Bursa Malaysia

    1,568.59
    +6.95 (+0.45%)
     

  • Jakarta Composite Index

    7,168.54
    +57.73 (+0.81%)
     

  • PSE Index

    6,587.52
    +80.72 (+1.24%)
     

Is Danaos (DAC) Stock Undervalued Right Now?

Zacks Equity Research
·3-min read

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Danaos (DAC) is a stock many investors are watching right now. DAC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 2.53, which compares to its industry's average of 4.20. Over the past year, DAC's Forward P/E has been as high as 5.30 and as low as 2.53, with a median of 3.72.

ADVERTISEMENT

Another valuation metric that we should highlight is DAC's P/B ratio of 0.74. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. DAC's current P/B looks attractive when compared to its industry's average P/B of 1.17. Over the past year, DAC's P/B has been as high as 1.19 and as low as 0.70, with a median of 0.88.

Finally, investors should note that DAC has a P/CF ratio of 1.31. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 3.94. 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 1.60.

Another great Transportation - Shipping stock you could consider is GasLog Partners (GLOP), which is a # 1 (Strong Buy) stock with a Value Score of A.

Additionally, GasLog Partners has a P/B ratio of 0.42 while its industry's price-to-book ratio sits at 1.17. For GLOP, this valuation metric has been as high as 0.50, as low as 0.23, with a median of 0.35 over the past year.

These are just a handful of the figures considered in Danaos and GasLog Partners's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DAC and GLOP is an impressive value stock right now.


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
 
GasLog Partners LP (GLOP) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research