In This Article:
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.
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.
One company value investors might notice is Danaos (DAC). DAC is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 2.97, which compares to its industry's average of 7.55. DAC's Forward P/E has been as high as 3.45 and as low as 2.29, with a median of 2.84, all within the past year.
Finally, our model also underscores that DAC has a P/CF ratio of 2.15. 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. DAC's P/CF compares to its industry's average P/CF of 5.74. Over the past 52 weeks, DAC's P/CF has been as high as 2.64 and as low as 1.91, with a median of 2.17.
Investors could also keep in mind KNOT Offshore Partners (KNOP), an Transportation - Shipping stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Furthermore, KNOT Offshore Partners holds a P/B ratio of 0.37 and its industry's price-to-book ratio is 2.64. KNOP's P/B has been as high as 0.57, as low as 0.32, with a median of 0.40 over the past 12 months.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Danaos and KNOT Offshore Partners are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DAC 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
Danaos Corporation (DAC) : Free Stock Analysis Report