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.
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.
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 16.39. Over the past 52 weeks, SHIP's Forward P/E has been as high as 9.63 and as low as 2.82, with a median of 6.88.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. SHIP has a P/S ratio of 1.86. This compares to its industry's average P/S of 1.91.
Finally, our model also underscores that SHIP has a P/CF ratio of 3.79. 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. SHIP's current P/CF looks attractive when compared to its industry's average P/CF of 9.54. SHIP's P/CF has been as high as 4.13 and as low as 1.70, with a median of 2.17, all within the past year.
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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