Is Global Ship Lease (GSL) Stock Undervalued Right Now?
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.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 Global Ship Lease (GSL). GSL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 2.07 right now. For comparison, its industry sports an average P/E of 4.92. GSL's Forward P/E has been as high as 2.72 and as low as 1.85, with a median of 2.14, all within the past year.
Another notable valuation metric for GSL is its P/B ratio of 0.67. 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 attractive against its industry's average P/B of 1. Within the past 52 weeks, GSL's P/B has been as high as 0.90 and as low as 0.60, with a median of 0.69.
Finally, our model also underscores that GSL has a P/CF ratio of 1.86. 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. This stock's P/CF looks attractive against its industry's average P/CF of 2.83. Over the past 52 weeks, GSL's P/CF has been as high as 2.65 and as low as 1.68, with a median of 1.94.
If you're looking for another solid Transportation - Shipping value stock, take a look at Scorpio Tankers (STNG). STNG is a # 1 (Strong Buy) stock with a Value score of A.
Scorpio Tankers is trading at a forward earnings multiple of 4.54 at the moment, with a PEG ratio of 0.14. This compares to its industry's average P/E of 4.92 and average PEG ratio of 0.27.
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Global Ship Lease, Inc. (GSL) : Free Stock Analysis Report
Scorpio Tankers Inc. (STNG) : Free Stock Analysis Report
