Should Value Investors Buy EuroDry (EDRY) Stock?
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 company value investors might notice is EuroDry (EDRY). EDRY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.
Investors should also recognize that EDRY has a P/B ratio of 0.54. 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 stock's P/B looks solid versus its industry's average P/B of 1.42. Over the past 12 months, EDRY's P/B has been as high as 0.55 and as low as 0.35, with a median of 0.40.
Finally, investors should note that EDRY has a P/CF ratio of 4.25. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 5.82. EDRY's P/CF has been as high as 4.33 and as low as 1.01, with a median of 1.89, all within the past year.
If you're looking for another solid Transportation - Shipping value stock, take a look at Pangaea Logistics Solutions (PANL). PANL is a # 1 (Strong Buy) stock with a Value score of A.
Pangaea Logistics Solutions sports a P/B ratio of 1.12 as well; this compares to its industry's price-to-book ratio of 1.42. In the past 52 weeks, PANL's P/B has been as high as 1.12, as low as 0.65, with a median of 0.78.
These are just a handful of the figures considered in EuroDry and Pangaea Logistics Solutions'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 EDRY and PANL is an impressive value stock right now.
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EuroDry (EDRY) : Free Stock Analysis Report
Pangaea Logistics Solutions Ltd. (PANL) : Free Stock Analysis Report
