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Is Diamond S Shipping Inc. (DSSI) Stock Undervalued Right Now?

Zacks Equity Research
·2 min read

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 the latest value, growth, and momentum trends to underscore strong picks.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 Diamond S Shipping Inc. (DSSI). DSSI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Investors should also recognize that DSSI has a P/B ratio of 0.32. 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 0.86. Within the past 52 weeks, DSSI's P/B has been as high as 0.59 and as low as 0.31, with a median of 0.40.

Finally, our model also underscores that DSSI has a P/CF ratio of 2.52. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. DSSI's P/CF compares to its industry's average P/CF of 7.95. Within the past 12 months, DSSI's P/CF has been as high as 50.23 and as low as 2.38, with a median of 16.69.

These are only a few of the key metrics included in Diamond S Shipping Inc.'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, DSSI looks like an impressive value stock at the moment.


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