Is Euroseas (ESEA) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Euroseas (ESEA). ESEA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 2.34, while its industry has an average P/E of 5.87. ESEA's Forward P/E has been as high as 2.38 and as low as 0.95, with a median of 1.39, all within the past year.
Investors should also recognize that ESEA has a P/B ratio of 0.89. 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 1.09. Within the past 52 weeks, ESEA's P/B has been as high as 1.31 and as low as 0.64, with a median of 0.82.
Finally, investors should note that ESEA has a P/CF ratio of 1.74. 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 P/CF compares to its industry's average P/CF of 3.05. Within the past 12 months, ESEA's P/CF has been as high as 1.78 and as low as 1.06, with a median of 1.24.
Another great Transportation - Shipping stock you could consider is Teekay Tankers (TNK), which is a # 2 (Buy) stock with a Value Score of A.
Teekay Tankers is trading at a forward earnings multiple of 4.23 at the moment, with a PEG ratio of 1.41. This compares to its industry's average P/E of 5.87 and average PEG ratio of 0.33.
TNK's price-to-earnings ratio has been as high as 10.87 and as low as 1.98, with a median of 4.13, while its PEG ratio has been as high as 3.62 and as low as 0.66, with a median of 1.38, all within the past year.
Furthermore, Teekay Tankers holds a P/B ratio of 1.03 and its industry's price-to-book ratio is 1.09. TNK's P/B has been as high as 1.51, as low as 0.85, with a median of 1.09 over the past 12 months.
These are only a few of the key metrics included in Euroseas and Teekay Tankers strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ESEA and TNK look like an impressive value stock at the moment.
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Euroseas Ltd. (ESEA) : Free Stock Analysis Report
Teekay Tankers Ltd. (TNK) : Free Stock Analysis Report
