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Should Value Investors Buy These Transportation Stocks?
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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 EuroDry (EDRY - Free Report) . EDRY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
Another valuation metric that we should highlight is EDRY's P/B ratio of 0.94. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.02. EDRY's P/B has been as high as 2.20 and as low as 0.35, with a median of 1, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. EDRY has a P/S ratio of 1.28. This compares to its industry's average P/S of 1.47.
Finally, we should also recognize that EDRY has a P/CF ratio of 2.51. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. EDRY's current P/CF looks attractive when compared to its industry's average P/CF of 6.29. Over the past year, EDRY's P/CF has been as high as 29.39 and as low as 2.28, with a median of 6.53.
GasLog Partners may be another strong Transportation - Shipping stock to add to your shortlist. GLOP is a # 2 (Buy) stock with a Value grade of A.
GasLog Partners sports a P/B ratio of 0.35 as well; this compares to its industry's price-to-book ratio of 1.02. In the past 52 weeks, GLOP's P/B has been as high as 0.44, as low as 0.20, with a median of 0.28.
These figures are just a handful of the metrics value investors tend to look at, but they help show that EuroDry and GasLog Partners are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EDRY and GLOP feels like a great value stock at the moment.
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Should Value Investors Buy These Transportation Stocks?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 EuroDry (EDRY - Free Report) . EDRY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.
Another valuation metric that we should highlight is EDRY's P/B ratio of 0.94. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.02. EDRY's P/B has been as high as 2.20 and as low as 0.35, with a median of 1, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. EDRY has a P/S ratio of 1.28. This compares to its industry's average P/S of 1.47.
Finally, we should also recognize that EDRY has a P/CF ratio of 2.51. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. EDRY's current P/CF looks attractive when compared to its industry's average P/CF of 6.29. Over the past year, EDRY's P/CF has been as high as 29.39 and as low as 2.28, with a median of 6.53.
GasLog Partners may be another strong Transportation - Shipping stock to add to your shortlist. GLOP is a # 2 (Buy) stock with a Value grade of A.
GasLog Partners sports a P/B ratio of 0.35 as well; this compares to its industry's price-to-book ratio of 1.02. In the past 52 weeks, GLOP's P/B has been as high as 0.44, as low as 0.20, with a median of 0.28.
These figures are just a handful of the metrics value investors tend to look at, but they help show that EuroDry and GasLog Partners are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, EDRY and GLOP feels like a great value stock at the moment.