Should Value Investors Buy Pangaea Logistics Solutions (PANL) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Pangaea Logistics Solutions (PANL) is a stock many investors are watching right now. PANL is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.
Investors should also recognize that PANL has a P/B ratio of 0.86. 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 stock's P/B looks attractive against its industry's average P/B of 1.23. Over the past year, PANL's P/B has been as high as 0.91 and as low as 0.63, with a median of 0.76.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PANL has a P/S ratio of 0.66. This compares to its industry's average P/S of 1.14.
Finally, we should also recognize that PANL has a P/CF ratio of 4.39. 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 5.03. PANL's P/CF has been as high as 4.64 and as low as 2, with a median of 3.03, all within the past year.
Another great Transportation - Shipping stock you could consider is Scorpio Tankers (STNG), which is a # 2 (Buy) stock with a Value Score of A.
Scorpio Tankers is currently trading with a Forward P/E ratio of 5.36 while its PEG ratio sits at 0.16. Both of the company's metrics compare favorably to its industry's average P/E of 5.73 and average PEG ratio of 0.32.
STNG's price-to-earnings ratio has been as high as 7.33 and as low as 3.87, with a median of 5.87, while its PEG ratio has been as high as 0.22 and as low as 0.09, with a median of 0.17, all within the past year.
Scorpio Tankers also has a P/B ratio of 1.19 compared to its industry's price-to-book ratio of 1.23. Over the past year, its P/B ratio has been as high as 1.56, as low as 0.94, with a median of 1.22.
Value investors will likely look at more than just these metrics, but the above data helps show that Pangaea Logistics Solutions and Scorpio Tankers are likely undervalued currently. And when considering the strength of its earnings outlook, PANL and STNG sticks out as one of the market's strongest value stocks.
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Pangaea Logistics Solutions Ltd. (PANL) : Free Stock Analysis Report
Scorpio Tankers Inc. (STNG) : Free Stock Analysis Report
