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Is Safe Bulkers (SB) Stock Undervalued Right Now?

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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.

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.

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 stock to keep an eye on is Safe Bulkers (SB). SB is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 2.95. This compares to its industry's average Forward P/E of 4.72. Over the last 12 months, SB's Forward P/E has been as high as 8.73 and as low as 2.91, with a median of 4.73.

Investors should also recognize that SB 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. SB's current P/B looks attractive when compared to its industry's average P/B of 1.05. Over the past year, SB's P/B has been as high as 1.12 and as low as 0.23, with a median of 0.72.

Finally, we should also recognize that SB has a P/CF ratio of 2.05. 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. SB's P/CF compares to its industry's average P/CF of 6.26. Within the past 12 months, SB's P/CF has been as high as 7.40 and as low as 2.05, with a median of 3.43.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Safe Bulkers is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SB feels like a great value stock at the moment.

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