Is EuroDry (EDRY) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
One company value investors might notice is EuroDry (EDRY). EDRY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
We should also highlight that EDRY has a P/B ratio of 0.40. The P/B ratio is used to compare a stock's market value with 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 1.12. EDRY's P/B has been as high as 0.48 and as low as 0.35, with a median of 0.40, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. EDRY has a P/S ratio of 0.96. This compares to its industry's average P/S of 1.06.
Finally, our model also underscores that EDRY has a P/CF ratio of 3.12. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. EDRY's P/CF compares to its industry's average P/CF of 3.63. Within the past 12 months, EDRY's P/CF has been as high as 3.26 and as low as 0.83, with a median of 1.32.
Pangaea Logistics Solutions (PANL) may be another strong Transportation - Shipping stock to add to your shortlist. PANL is a # 1 (Strong Buy) stock with a Value grade of A.
Additionally, Pangaea Logistics Solutions has a P/B ratio of 0.80 while its industry's price-to-book ratio sits at 1.12. For PANL, this valuation metric has been as high as 0.91, as low as 0.61, with a median of 0.75 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that EuroDry and Pangaea Logistics Solutions are likely undervalued currently. And when considering the strength of its earnings outlook, EDRY and PANL sticks out as one of the market's strongest value stocks.
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EuroDry (EDRY) : Free Stock Analysis Report
Pangaea Logistics Solutions Ltd. (PANL) : Free Stock Analysis Report
