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Should Value Investors Buy GasLog (GLOG) Stock?

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Zacks Equity Research
·2 min read
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 GasLog (GLOG). GLOG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 5.54. This compares to its industry's average Forward P/E of 6.51. Over the past 52 weeks, GLOG's Forward P/E has been as high as 19.46 and as low as 3.81, with a median of 7.03.

Another valuation metric that we should highlight is GLOG's P/B ratio of 0.25. 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 0.44. Over the past year, GLOG's P/B has been as high as 0.48 and as low as 0.13, with a median of 0.19.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GLOG has a P/S ratio of 0.68. This compares to its industry's average P/S of 0.83.

Value investors will likely look at more than just these metrics, but the above data helps show that GasLog is likely undervalued currently. And when considering the strength of its earnings outlook, GLOG sticks out at as one of the market's strongest value stocks.


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