Should Value Investors Buy StealthGas (GASS) Stock?

GASS

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 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 company to watch right now is StealthGas (GASS - Free Report) . GASS is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 6.79, which compares to its industry's average of 18.19. Over the last 12 months, GASS's Forward P/E has been as high as 43.03 and as low as 4.31, with a median of 10.10.

Finally, investors should note that GASS has a P/CF ratio of 2.28. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. GASS's P/CF compares to its industry's average P/CF of 7.95. Over the past year, GASS's P/CF has been as high as 4.45 and as low as 1.59, with a median of 3.01.

These are only a few of the key metrics included in StealthGas's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, GASS looks like an impressive value stock at the moment.

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