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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One company to watch right now is China Cosco (CICOY). CICOY is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.7, which compares to its industry's average of 9.72. CICOY's Forward P/E has been as high as 15.22 and as low as 4.18, with a median of 8.15, all within the past year.
Investors should also recognize that CICOY has a P/B ratio of 0.71. 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 2.13. Within the past 52 weeks, CICOY's P/B has been as high as 0.79 and as low as 0.52, with a median of 0.66.
If you're looking for another solid Transportation - Shipping value stock, take a look at Pangaea Logistics Solutions (PANL). PANL is a Zacks Rank of #2 (Buy) stock with a Value score of A.
Additionally, Pangaea Logistics Solutions has a P/B ratio of 0.77 while its industry's price-to-book ratio sits at 2.13. For PANL, this valuation metric has been as high as 0.92, as low as 0.56, with a median of 0.72 over the past year.
These are only a few of the key metrics included in China Cosco and Pangaea Logistics Solutions strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CICOY and PANL look like an impressive value stock at the moment.
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COSCO SHIPPING Holdings Co., Ltd. Unsponsored ADR (CICOY): Free Stock Analysis Report
Pangaea Logistics Solutions Ltd. (PANL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).