Are Investors Undervaluing Scorpio Tankers (STNG) Right Now?

STNG

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.

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.

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 Scorpio Tankers (STNG - Free Report) . STNG is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

We should also highlight that STNG has a P/B ratio of 0.46. 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 company's current P/B looks solid when compared to its industry's average P/B of 0.86. Over the past year, STNG's P/B has been as high as 1.17 and as low as 0.38, with a median of 0.75.

Finally, we should also recognize that STNG has a P/CF ratio of 4.08. 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 7.95. STNG's P/CF has been as high as 20.20 and as low as 3.83, with a median of 10.04, all within the past year.

These are only a few of the key metrics included in Scorpio Tankers'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, STNG looks like an impressive value stock at the moment.

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