Back to top

Image: Bigstock

Should Value Investors Buy StealthGas (GASS) Stock?

Read MoreHide Full Article

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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 to watch right now is StealthGas (GASS - Free Report) . GASS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GASS has a P/S ratio of 0.89. This compares to its industry's average P/S of 1.34.

Finally, our model also underscores that GASS has a P/CF ratio of 3.87. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 8.44. Over the past 52 weeks, GASS's P/CF has been as high as 4.77 and as low as 3.12, with a median of 3.96.

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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


StealthGas, Inc. (GASS) - free report >>

Published in