Are Investors Undervaluing Diamond S Shipping Inc. (DSSI) 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 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 Diamond S Shipping Inc. (DSSI). DSSI is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 5.41, while its industry has an average P/E of 11.01. DSSI's Forward P/E has been as high as 15.23 and as low as 5.18, with a median of 7.86, all within the past year.
Another valuation metric that we should highlight is DSSI's P/B ratio of 0.49. 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. DSSI's current P/B looks attractive when compared to its industry's average P/B of 0.78. Within the past 52 weeks, DSSI's P/B has been as high as 0.54 and as low as 0.32, with a median of 0.40.
These are just a handful of the figures considered in Diamond S Shipping Inc.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DSSI is an impressive value stock right now.
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