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Are Investors Undervaluing Pangaea Logistics (PANL) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 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 Pangaea Logistics (PANL - Free Report) . PANL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 3.56, which compares to its industry's average of 5.27. Over the past year, PANL's Forward P/E has been as high as 259 and as low as 3.55, with a median of 6.63.

Another notable valuation metric for PANL is its P/B ratio of 0.90. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.08. PANL's P/B has been as high as 1.04 and as low as 0.48, with a median of 0.62, over the past year.

Finally, we should also recognize that PANL has a P/CF ratio of 3.83. 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 6.68. Over the past year, PANL's P/CF has been as high as 7.84 and as low as 3.11, with a median of 4.36.

These are just a handful of the figures considered in Pangaea Logistics'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 PANL is an impressive value stock right now.


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