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Should Value Investors Buy Ardmore Shipping (ASC) Stock?

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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Ardmore Shipping (ASC - Free Report) . ASC is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ASC has a P/S ratio of 0.98. This compares to its industry's average P/S of 0.99.

Finally, investors will want to recognize that ASC has a P/CF ratio of 2.24. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. ASC's P/CF compares to its industry's average P/CF of 2.79. Over the past 52 weeks, ASC's P/CF has been as high as 82.81 and as low as 2.19, with a median of 4.59.

Another great Transportation - Shipping stock you could consider is Global Ship Lease (GSL - Free Report) , which is a # 1 (Strong Buy) stock with a Value Score of A.

Additionally, Global Ship Lease has a P/B ratio of 0.65 while its industry's price-to-book ratio sits at 0.98. For GSL, this valuation metric has been as high as 1.08, as low as 0.60, with a median of 0.70 over the past year.

These are just a handful of the figures considered in Ardmore Shipping and Global Ship Lease'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 ASC and GSL is an impressive value stock right now.


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