Yahoo Finance Are Investors Undervaluing Costamare (CMRE) Right Now?
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 company to watch right now is Costamare (CMRE). CMRE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 5.17, which compares to its industry's average of 6.69. CMRE's Forward P/E has been as high as 5.42 and as low as 3.35, with a median of 4.08, all within the past year.
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. CMRE has a P/S ratio of 1.02. This compares to its industry's average P/S of 1.4.
Finally, our model also underscores that CMRE has a P/CF ratio of 3.40. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CMRE's current P/CF looks attractive when compared to its industry's average P/CF of 7.12. Within the past 12 months, CMRE's P/CF has been as high as 3.57 and as low as 1.44, with a median of 1.86.
KNOT Offshore Partners (KNOP) may be another strong Transportation - Shipping stock to add to your shortlist. KNOP is a # 1 (Strong Buy) stock with a Value grade of A.
KNOT Offshore Partners sports a P/B ratio of 0.44 as well; this compares to its industry's price-to-book ratio of 2.21. In the past 52 weeks, KNOP's P/B has been as high as 0.48, as low as 0.29, with a median of 0.36.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Costamare and KNOT Offshore Partners are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CMRE and KNOP feels like a great value stock at the moment.
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
Costamare Inc. (CMRE) : Free Stock Analysis Report
KNOT Offshore Partners LP (KNOP) : Free Stock Analysis Report
