Are Investors Undervaluing EuroDry (EDRY) 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, 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.
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 stock to keep an eye on is EuroDry (EDRY). EDRY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Another notable valuation metric for EDRY is its P/B ratio of 0.51. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. EDRY's current P/B looks attractive when compared to its industry's average P/B of 1.28. EDRY's P/B has been as high as 0.52 and as low as 0.35, with a median of 0.40, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. EDRY has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.2.
Finally, our model also underscores that EDRY has a P/CF ratio of 3.97. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 5.24. Within the past 12 months, EDRY's P/CF has been as high as 4.07 and as low as 0.85, with a median of 1.38.
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.
Shares of Teekay Tankers currently holds a Forward P/E ratio of 5.68, and its PEG ratio is 1.89. In comparison, its industry sports average P/E and PEG ratios of 5.97 and 0.34.
TNK's price-to-earnings ratio has been as high as 5.87 and as low as 1.98, with a median of 4.05, while its PEG ratio has been as high as 1.96 and as low as 0.66, with a median of 1.35, all within the past year.
Additionally, Teekay Tankers has a P/B ratio of 1.19 while its industry's price-to-book ratio sits at 1.28. For TNK, this valuation metric has been as high as 1.51, as low as 0.85, with a median of 1.07 over the past year.
These are only a few of the key metrics included in EuroDry and Teekay Tankers strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, EDRY and TNK look like an impressive value stock at the moment.
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EuroDry (EDRY) : Free Stock Analysis Report
Teekay Tankers Ltd. (TNK) : Free Stock Analysis Report
