Is Safe Bulkers (SB) a Great Value Stock 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...
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Safe Bulkers (SB) is a stock many investors are watching right now. SB is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 3.90, while its industry has an average P/E of 4.94. SB's Forward P/E has been as high as 8.73 and as low as 2.91, with a median of 5.43, all within the past year.
Investors should also recognize that SB has a P/B ratio of 0.96. The P/B ratio pits a stock's market value against 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 1.07. Over the past 12 months, SB's P/B has been as high as 1.14 and as low as 0.20, with a median of 0.68.
Finally, we should also recognize that SB has a P/CF ratio of 3.31. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.37. Over the past year, SB's P/CF has been as high as 7.40 and as low as 2.30, with a median of 3.55.
These are only a few of the key metrics included in Safe Bulkers's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SB looks like an impressive value stock at the moment.
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