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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
StealthGas (GASS - Free Report) is a stock many investors are watching right now. 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 2.44, which compares to its industry's average of 6.95. Over the last 12 months, GASS's Forward P/E has been as high as 43.03 and as low as 2.44, with a median of 7.94.
Another notable valuation metric for GASS is its P/B ratio of 0.17. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. GASS's current P/B looks attractive when compared to its industry's average P/B of 0.44. Within the past 52 weeks, GASS's P/B has been as high as 0.27 and as low as 0.12, with a median of 0.20.
These are just a handful of the figures considered in StealthGas's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GASS is an impressive value stock right now.