Is Euroseas (ESEA) a Great Value Stock Right Now?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is Euroseas (ESEA). ESEA is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ESEA has a P/S ratio of 1.01. This compares to its industry's average P/S of 1.15.
Finally, we should also recognize that ESEA has a P/CF ratio of 1.64. 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. ESEA's current P/CF looks attractive when compared to its industry's average P/CF of 2.97. Over the past 52 weeks, ESEA's P/CF has been as high as 14.91 and as low as 1.51, with a median of 3.73.
If you're looking for another solid Transportation - Shipping value stock, take a look at Global Ship Lease (GSL). GSL is a # 1 (Strong Buy) stock with a Value score of A.
Additionally, Global Ship Lease has a P/B ratio of 0.82 while its industry's price-to-book ratio sits at 1.13. For GSL, this valuation metric has been as high as 1.54, as low as 0.67, with a median of 1.18 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Euroseas and Global Ship Lease are likely undervalued currently. And when considering the strength of its earnings outlook, ESEA and GSL sticks out as one of the market's strongest value stocks.
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Euroseas Ltd. (ESEA) : Free Stock Analysis Report
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