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, 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 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.
Seanergy Maritime Holdings (SHIP) is a stock many investors are watching right now. SHIP is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 9.27, while its industry has an average P/E of 11.57. Over the past year, SHIP's Forward P/E has been as high as 9.63 and as low as 2.82, with a median of 6.88.
We should also highlight that SHIP has a P/B ratio of 0.69. The P/B is a method of comparing a stock's market value to 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 1.67. SHIP's P/B has been as high as 1.02 and as low as 0.41, with a median of 0.55, over the past year.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. SHIP has a P/S ratio of 1.28. This compares to its industry's average P/S of 1.68.
Finally, investors will want to recognize that SHIP has a P/CF ratio of 3.79. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.34. Over the past year, SHIP's P/CF has been as high as 4.13 and as low as 1.70, with a median of 2.17.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Seanergy Maritime Holdings is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SHIP feels like a great value stock at the moment.
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Seanergy Maritime Holdings Corp (SHIP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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