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Are Investors Undervaluing StealthGas (GASS) Right Now?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is StealthGas (GASS - Free Report) . GASS is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.04, which compares to its industry's average of 6.92. GASS's Forward P/E has been as high as 43.03 and as low as 4.31, with a median of 8.13, all within the past year.

Another valuation metric that we should highlight is GASS's P/B ratio of 0.20. 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 attractive against its industry's average P/B of 0.44. GASS's P/B has been as high as 0.27 and as low as 0.12, with a median of 0.21, over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that StealthGas is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GASS feels like a great value stock at the moment.


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