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Zacks

Are These Transportation Stocks Undervalued 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 latest value, growth, and momentum trends to underscore 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 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.

Costamare (CMRE) is a stock many investors are watching right now. CMRE is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 3.35, while its industry has an average P/E of 4.45. CMRE's Forward P/E has been as high as 6.89 and as low as 2.84, with a median of 4.86, all within the past year.

Another valuation metric that we should highlight is CMRE's P/B ratio of 1.06. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.23. Within the past 52 weeks, CMRE's P/B has been as high as 1.37 and as low as 0.82, with a median of 0.97.

Finally, our model also underscores that CMRE has a P/CF ratio of 3.81. 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. CMRE's P/CF compares to its industry's average P/CF of 5.46. Within the past 12 months, CMRE's P/CF has been as high as 9.86 and as low as 3.18, with a median of 4.28.

Another great Transportation - Shipping stock you could consider is Genco Shipping & Trading Limited (GNK), which is a # 2 (Buy) stock with a Value Score of A.

Furthermore, Genco Shipping & Trading Limited holds a P/B ratio of 0.88 and its industry's price-to-book ratio is 1.23. GNK's P/B has been as high as 1.15, as low as 0.56, with a median of 0.86 over the past 12 months.

Value investors will likely look at more than just these metrics, but the above data helps show that Costamare and Genco Shipping & Trading Limited are likely undervalued currently. And when considering the strength of its earnings outlook, CMRE and GNK sticks out as one of the market's strongest value stocks.


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Blockchain and cryptocurrency has sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.

Zacks’ has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly. 

See 3 crypto-related stocks now >>

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
 
Costamare Inc. (CMRE): Free Stock Analysis Report
 
Genco Shipping & Trading Limited (GNK): Free Stock Analysis Report
 
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