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Are These Transportation Stocks a Great Value Stocks Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

StealthGas (GASS - Free Report) is a stock many investors are watching right now. GASS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GASS has a P/S ratio of 0.65. This compares to its industry's average P/S of 1.56.

Finally, our model also underscores that GASS has a P/CF ratio of 2.25. 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 current P/CF looks attractive when compared to its industry's average P/CF of 5.31. Within the past 12 months, GASS's P/CF has been as high as 2.64 and as low as 1.76, with a median of 2.29.

Another great Transportation - Shipping stock you could consider is Genco Shipping & Trading Limited (GNK - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Furthermore, Genco Shipping & Trading Limited holds a P/B ratio of 0.94 and its industry's price-to-book ratio is 1.24. GNK's P/B has been as high as 1.15, as low as 0.56, with a median of 0.86 over the past 12 months.

These are just a handful of the figures considered in StealthGas and Genco Shipping & Trading Limited'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 and GNK is an impressive value stock right now.


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Genco Shipping & Trading Limited (GNK) - free report >>

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