Are Investors Undervaluing Eagle Bulk Shipping (EGLE) 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Eagle Bulk Shipping (EGLE). EGLE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another notable valuation metric for EGLE is its P/B ratio of 0.86. 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 stock's P/B looks solid versus its industry's average P/B of 1.08. EGLE's P/B has been as high as 1.50 and as low as 0.72, with a median of 0.90, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. EGLE has a P/S ratio of 0.93. This compares to its industry's average P/S of 1.03.
Finally, our model also underscores that EGLE has a P/CF ratio of 2.06. 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 2.86. Within the past 12 months, EGLE's P/CF has been as high as 4.13 and as low as 1.69, with a median of 2.18.
Investors could also keep in mind Safe Bulkers (SB), an Transportation - Shipping stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
Furthermore, Safe Bulkers holds a P/B ratio of 0.49 and its industry's price-to-book ratio is 1.08. SB's P/B has been as high as 0.87, as low as 0.40, with a median of 0.63 over the past 12 months.
These are only a few of the key metrics included in Eagle Bulk Shipping and Safe Bulkers strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, EGLE and SB look like an impressive value stock at the moment.
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Eagle Bulk Shipping Inc. (EGLE) : Free Stock Analysis Report
Safe Bulkers, Inc (SB) : Free Stock Analysis Report
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