Is Seacor (CKH) Stock Undervalued 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now is Seacor (CKH). CKH is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 20.47 right now. For comparison, its industry sports an average P/E of 46.65. Over the past 52 weeks, CKH's Forward P/E has been as high as 26.44 and as low as 14.82, with a median of 20.31.
Another valuation metric that we should highlight is CKH's P/B ratio of 0.73. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.72. Within the past 52 weeks, CKH's P/B has been as high as 1.19 and as low as 0.57, with a median of 0.96.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Seacor is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CKH feels like a great value stock at the moment.
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