Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.27. This compares to its industry's average Forward P/E of 13.56. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.83. Over the past year, SHIP's P/B has been as high as 1.02 and as low as 0.41, with a median of 0.55.
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. SHIP has a P/S ratio of 1.54. This compares to its industry's average P/S of 1.7.
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 8.38. Within the past 12 months, SHIP's P/CF has been as high as 4.13 and as low as 1.70, with a median of 2.17.
Value investors will likely look at more than just these metrics, but the above data helps show that Seanergy Maritime Holdings is likely undervalued currently. And when considering the strength of its earnings outlook, SHIP sticks out as one of the market's strongest value stocks.
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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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