Is Seacor (CKH) a Great Value Stock Right Now?
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, 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Seacor (CKH) is a stock many investors are watching right now. CKH is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.
Another valuation metric that we should highlight is CKH'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. CKH's current P/B looks attractive when compared to its industry's average P/B of 1.23. Within the past 52 weeks, CKH's P/B has been as high as 1.38 and as low as 0.76, with a median of 0.95.
Finally, we should also recognize that CKH has a P/CF ratio of 6.10. 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. CKH's current P/CF looks attractive when compared to its industry's average P/CF of 8.23. CKH's P/CF has been as high as 6.64 and as low as 3.08, with a median of 5.23, all within the past year.
These are only a few of the key metrics included in Seacor'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, CKH looks like an impressive value stock at the moment.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.