Are These Transportation Stocks a Great Value Stocks Right Now?
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 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One stock to keep an eye on is Eagle Bulk Shipping (EGLE). EGLE is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 3.12, which compares to its industry's average of 4.04. Over the last 12 months, EGLE's Forward P/E has been as high as 59.43 and as low as -53.54, with a median of 4.48.
Another valuation metric that we should highlight is EGLE's P/B ratio of 0.90. 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. EGLE's current P/B looks attractive when compared to its industry's average P/B of 0.97. Over the past year, EGLE's P/B has been as high as 1.42 and as low as 0.43, with a median of 0.97.
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. EGLE has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.38.
Finally, we should also recognize that EGLE has a P/CF ratio of 3.81. 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. EGLE's current P/CF looks attractive when compared to its industry's average P/CF of 5.93. Within the past 12 months, EGLE's P/CF has been as high as 13.49 and as low as 3.46, with a median of 7.58.
Hoegh LNG Partners (HMLP) may be another strong Transportation - Shipping stock to add to your shortlist. HMLP is a # 2 (Buy) stock with a Value grade of A.
Shares of Hoegh LNG Partners are currently trading at a forward earnings multiple of 3.09 and a PEG ratio of 0.49 compared to its industry's P/E and PEG ratios of 4.04 and 0.50, respectively.
HMLP's price-to-earnings ratio has been as high as 11.13 and as low as 2.71, with a median of 9.31, while its PEG ratio has been as high as 1.95 and as low as 0.43, with a median of 1.50, all within the past year.
Hoegh LNG Partners sports a P/B ratio of 0.43 as well; this compares to its industry's price-to-book ratio of 0.97. In the past 52 weeks, HMLP's P/B has been as high as 1.86, as low as 0.39, with a median of 1.50.
These are only a few of the key metrics included in Eagle Bulk Shipping and Hoegh LNG Partners strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, EGLE and HMLP look like an impressive value stock at the moment.
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Eagle Bulk Shipping Inc. (EGLE): Free Stock Analysis Report
Hoegh LNG Partners LP (HMLP): Free Stock Analysis Report
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