Are Investors Undervaluing Ardmore Shipping (ASC) 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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 stock to keep an eye on is Ardmore Shipping (ASC). ASC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also recognize that ASC has a P/B ratio of 1.06. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.12. Within the past 52 weeks, ASC's P/B has been as high as 1.64 and as low as 0.88, with a median of 1.16.
Finally, our model also underscores that ASC has a P/CF ratio of 2.40. 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. This stock's P/CF looks attractive against its industry's average P/CF of 3.37. Over the past year, ASC's P/CF has been as high as 9.43 and as low as 2.19, with a median of 3.26.
If you're looking for another solid Transportation - Shipping value stock, take a look at Teekay Tankers (TNK). TNK is a # 2 (Buy) stock with a Value score of A.
Teekay Tankers is currently trading with a Forward P/E ratio of 3.98 while its PEG ratio sits at 1.33. Both of the company's metrics compare favorably to its industry's average P/E of 5.65 and average PEG ratio of 0.32.
TNK's Forward P/E has been as high as 7.83 and as low as 1.98, with a median of 4.06. During the same time period, its PEG ratio has been as high as 2.61, as low as 0.66, with a median of 1.35.
Furthermore, Teekay Tankers holds a P/B ratio of 0.97 and its industry's price-to-book ratio is 1.12. 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 figures are just a handful of the metrics value investors tend to look at, but they help show that Ardmore Shipping and Teekay Tankers are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ASC and TNK feels like a great value stock at the moment.
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Ardmore Shipping Corporation (ASC) : Free Stock Analysis Report
Teekay Tankers Ltd. (TNK) : Free Stock Analysis Report
