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Should Value Investors Buy Euroseas (ESEA) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

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 stock to keep an eye on is Euroseas (ESEA - Free Report) . ESEA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade 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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ESEA has a P/S ratio of 1.1. This compares to its industry's average P/S of 1.13.

Finally, our model also underscores that ESEA has a P/CF ratio of 1.69. 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 2.81. ESEA's P/CF has been as high as 14.91 and as low as 1.51, with a median of 4.02, all within the past year.

Investors could also keep in mind Safe Bulkers (SB - Free Report) , an Transportation - Shipping stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.

Safe Bulkers also has a P/B ratio of 0.55 compared to its industry's price-to-book ratio of 1.14. Over the past year, its P/B ratio has been as high as 1.12, as low as 0.55, with a median of 0.72.

These are only a few of the key metrics included in Euroseas and Safe Bulkers 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 SB look like an impressive value stock at the moment.


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