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Are These Transportation Stocks a Great Value Stocks Right Now?

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·3-min read
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  • GOGL
  • SBLK

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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Golden Ocean Group (GOGL) is a stock many investors are watching right now. GOGL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Another notable valuation metric for GOGL is its P/B ratio of 0.72. The P/B ratio pits a stock's market value against 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 0.99. GOGL's P/B has been as high as 0.96 and as low as 0.44, with a median of 0.73, over the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GOGL has a P/S ratio of 1.36. This compares to its industry's average P/S of 1.41.

Finally, we should also recognize that GOGL has a P/CF ratio of 4.08. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.23. GOGL's P/CF has been as high as 294.98 and as low as -96.06, with a median of 6.45, all within the past year.

Another great Transportation - Shipping stock you could consider is Star Bulk Carriers (SBLK), which is a # 2 (Buy) stock with a Value Score of A.

Star Bulk Carriers sports a P/B ratio of 1.27 as well; this compares to its industry's price-to-book ratio of 0.99. In the past 52 weeks, SBLK's P/B has been as high as 1.47, as low as 0.47, with a median of 1.11.

Value investors will likely look at more than just these metrics, but the above data helps show that Golden Ocean Group and Star Bulk Carriers are likely undervalued currently. And when considering the strength of its earnings outlook, GOGL and SBLK sticks out as one of the market's strongest value stocks.


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Golden Ocean Group Limited (GOGL) : Free Stock Analysis Report
 
Star Bulk Carriers Corp. (SBLK) : Free Stock Analysis Report
 
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