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Should Value Investors Buy StealthGas (GASS) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 StealthGas (GASS - Free Report) . GASS is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 9.37, while its industry has an average P/E of 15.50. GASS's Forward P/E has been as high as 35.46 and as low as 9.23, with a median of 13.95, all within the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GASS has a P/S ratio of 0.81. This compares to its industry's average P/S of 1.03.

Finally, we should also recognize that GASS has a P/CF ratio of 3.59. 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. GASS's P/CF compares to its industry's average P/CF of 9.29. Over the past 52 weeks, GASS's P/CF has been as high as 5.39 and as low as 3.12, with a median of 4.30.

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


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