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Is Euroseas (ESEA) Stock Undervalued 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.

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.

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.

One company to watch right now is Euroseas (ESEA - Free Report) . ESEA is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 1.65 right now. For comparison, its industry sports an average P/E of 4.27. Over the past year, ESEA's Forward P/E has been as high as 4.75 and as low as 1.57, with a median of 2.86.

Finally, investors will want to recognize that ESEA has a P/CF ratio of 3.64. 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. ESEA's P/CF compares to its industry's average P/CF of 3.76. Over the past 52 weeks, ESEA's P/CF has been as high as 14.91 and as low as 3.44, with a median of 7.52.

Nippon Yusen Kabushiki Kaisha (NPNYY - Free Report) may be another strong Transportation - Shipping stock to add to your shortlist. NPNYY is a # 1 (Strong Buy) stock with a Value grade of A.

Nippon Yusen Kabushiki Kaisha also has a P/B ratio of 1.07 compared to its industry's price-to-book ratio of 1.10. Over the past year, its P/B ratio has been as high as 2.30, as low as 1, with a median of 1.22.

These are only a few of the key metrics included in Euroseas and Nippon Yusen Kabushiki Kaisha strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ESEA and NPNYY look like an impressive value stock at the moment.


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