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Starting in the Zacks Transportation sector, Ardmore Shipping is standing out with a Zacks Rank #1 (Strong Buy).
Engaged in the ownership and operation of chemical tankers, Ardmore stock has an 11.14% dividend yield and is starting to look undervalued at its current levels. Ardmore’s dividend yield is well above a generous industry average of 3.22% and the S&P 500’s 1.46% average.
Trading at $12 a share, Ardmore stock trades at 4.5X forward earnings which is nicely beneath the industry average of 6X and the S&P 500’s 20.3X. Plus, earnings estimate revisions are noticeably higher over the last 60 days supporting the case that Ardmore stock may be undervalued when considering its P/E valuation.
Also boasting a Zacks Rank #1 (Strong Buy) Xerox stock has become attractive at its current levels. Despite decreasing demand for paper-related systems and products, Xerox is still a leader in the contractual print and document services market.
Furthermore, with Xerox stock trading at $14 a share it’s noteworthy that earnings estimates have trended higher in the last two months and the office supplies company offers a 6.89% dividend yield at the moment. Xerox’s dividend yield tops its lofty industry average of 4.87% and is well above the benchmark.
Image Source: Zacks Investment Research
More intriguing, Xerox’s bottom line is starting to stabilize with earnings forecasted to soar 37% this year at $1.54 per share compared to EPS of $1.12 in 2022. Plus, fiscal 2024 earnings are projected to jump another 15%.
Xerox’s P/E valuation is on par with the industry average at 9.4X forward earnings and well below the benchmark with the company’s EPS outlook offering further support.
Image Source: Zacks Investment Research
Bottom Line
Ardmore Shipping and Xerox stock are starting to offer sound value to investors at their current levels. Rising earnings estimates indicate there could be more upside with their stellar dividend yields making this scenario more compelling.
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2 Affordable Highly-Ranked Stocks to Buy for Dividend Yields Over 5%
Looking for stocks that may have more upside and also offer generous dividends is usually a priority for many investors.
Several highly-ranked Zacks stocks are standing out in this regard, and here is a look at a few investors should consider right now.
Ardmore Shipping (ASC - Free Report) )
Starting in the Zacks Transportation sector, Ardmore Shipping is standing out with a Zacks Rank #1 (Strong Buy).
Engaged in the ownership and operation of chemical tankers, Ardmore stock has an 11.14% dividend yield and is starting to look undervalued at its current levels. Ardmore’s dividend yield is well above a generous industry average of 3.22% and the S&P 500’s 1.46% average.
Trading at $12 a share, Ardmore stock trades at 4.5X forward earnings which is nicely beneath the industry average of 6X and the S&P 500’s 20.3X. Plus, earnings estimate revisions are noticeably higher over the last 60 days supporting the case that Ardmore stock may be undervalued when considering its P/E valuation.
Image Source: Zacks Investment Research
Xerox (XRX - Free Report) )
Also boasting a Zacks Rank #1 (Strong Buy) Xerox stock has become attractive at its current levels. Despite decreasing demand for paper-related systems and products, Xerox is still a leader in the contractual print and document services market.
Furthermore, with Xerox stock trading at $14 a share it’s noteworthy that earnings estimates have trended higher in the last two months and the office supplies company offers a 6.89% dividend yield at the moment. Xerox’s dividend yield tops its lofty industry average of 4.87% and is well above the benchmark.
Image Source: Zacks Investment Research
More intriguing, Xerox’s bottom line is starting to stabilize with earnings forecasted to soar 37% this year at $1.54 per share compared to EPS of $1.12 in 2022. Plus, fiscal 2024 earnings are projected to jump another 15%.
Xerox’s P/E valuation is on par with the industry average at 9.4X forward earnings and well below the benchmark with the company’s EPS outlook offering further support.
Image Source: Zacks Investment Research
Bottom Line
Ardmore Shipping and Xerox stock are starting to offer sound value to investors at their current levels. Rising earnings estimates indicate there could be more upside with their stellar dividend yields making this scenario more compelling.