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Is Ardmore Shipping (ASC) Stock Undervalued Right Now?
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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.
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 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.
One stock to keep an eye on is Ardmore Shipping (ASC - Free Report) . ASC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another notable valuation metric for ASC is its P/B ratio of 1.12. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. ASC's current P/B looks attractive when compared to its industry's average P/B of 1.23. Over the past 12 months, ASC's P/B has been as high as 1.64 and as low as 0.96, with a median of 1.12.
Finally, our model also underscores that ASC has a P/CF ratio of 3.24. 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 5.32. Over the past year, ASC's P/CF has been as high as 5.41 and as low as 2.19, with a median of 2.98.
Investors could also keep in mind Scorpio Tankers (STNG - Free Report) , an Transportation - Shipping stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Scorpio Tankers are currently trading at a forward earnings multiple of 5.61 and a PEG ratio of 0.17 compared to its industry's P/E and PEG ratios of 6.08 and 0.70, respectively.
Over the last 12 months, STNG's P/E has been as high as 7.33, as low as 3.87, with a median of 5.85, and its PEG ratio has been as high as 0.22, as low as 0.09, with a median of 0.17.
Additionally, Scorpio Tankers has a P/B ratio of 1.25 while its industry's price-to-book ratio sits at 1.23. For STNG, this valuation metric has been as high as 1.56, as low as 0.94, with a median of 1.21 over the past year.
These are just a handful of the figures considered in Ardmore Shipping and Scorpio Tankers'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 STNG is an impressive value stock right now.
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Is Ardmore Shipping (ASC) Stock Undervalued Right Now?
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.
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 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.
One stock to keep an eye on is Ardmore Shipping (ASC - Free Report) . ASC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another notable valuation metric for ASC is its P/B ratio of 1.12. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. ASC's current P/B looks attractive when compared to its industry's average P/B of 1.23. Over the past 12 months, ASC's P/B has been as high as 1.64 and as low as 0.96, with a median of 1.12.
Finally, our model also underscores that ASC has a P/CF ratio of 3.24. 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 5.32. Over the past year, ASC's P/CF has been as high as 5.41 and as low as 2.19, with a median of 2.98.
Investors could also keep in mind Scorpio Tankers (STNG - Free Report) , an Transportation - Shipping stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of Scorpio Tankers are currently trading at a forward earnings multiple of 5.61 and a PEG ratio of 0.17 compared to its industry's P/E and PEG ratios of 6.08 and 0.70, respectively.
Over the last 12 months, STNG's P/E has been as high as 7.33, as low as 3.87, with a median of 5.85, and its PEG ratio has been as high as 0.22, as low as 0.09, with a median of 0.17.
Additionally, Scorpio Tankers has a P/B ratio of 1.25 while its industry's price-to-book ratio sits at 1.23. For STNG, this valuation metric has been as high as 1.56, as low as 0.94, with a median of 1.21 over the past year.
These are just a handful of the figures considered in Ardmore Shipping and Scorpio Tankers'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 STNG is an impressive value stock right now.