Are Investors Undervaluing Diana Shipping (DSX) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Diana Shipping (DSX). DSX is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
Investors should also recognize that DSX has a P/B ratio of 0.82. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.08. Over the past year, DSX's P/B has been as high as 1.49 and as low as 0.68, with a median of 0.96.
Finally, our model also underscores that DSX has a P/CF ratio of 2.14. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 2.84. Over the past year, DSX's P/CF has been as high as 4.05 and as low as 1.56, with a median of 2.19.
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.
Furthermore, Global Ship Lease holds a P/B ratio of 0.68 and its industry's price-to-book ratio is 1.08. GSL's P/B has been as high as 1.33, as low as 0.60, with a median of 0.73 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Diana Shipping and Global Ship Lease are likely undervalued currently. And when considering the strength of its earnings outlook, DSX and GSL sticks out as one of the market's strongest value stocks.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Diana Shipping inc. (DSX) : Free Stock Analysis Report
Global Ship Lease, Inc. (GSL) : Free Stock Analysis Report
