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Are Investors Undervaluing Ardmore Shipping (ASC) Right Now?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Ardmore Shipping (ASC - Free Report) is a stock many investors are watching right now. ASC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 5.27, while its industry has an average P/E of 6.19. Over the last 12 months, ASC's Forward P/E has been as high as 8.45 and as low as 3.53, with a median of 6.20.
We should also highlight that ASC has a P/B ratio of 1.16. 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. This stock's P/B looks solid versus its industry's average P/B of 1.28. ASC's P/B has been as high as 1.64 and as low as 0.96, with a median of 1.12, over the past year.
Finally, investors should note that ASC has a P/CF ratio of 3.35. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ASC's P/CF compares to its industry's average P/CF of 5.36. ASC's P/CF has been as high as 5.10 and as low as 2.19, with a median of 2.98, all within the past year.
Investors could also keep in mind EuroDry (EDRY - Free Report) , an Transportation - Shipping stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
EuroDry sports a P/B ratio of 0.49 as well; this compares to its industry's price-to-book ratio of 1.28. In the past 52 weeks, EDRY's P/B has been as high as 0.52, as low as 0.35, with a median of 0.40.
These are just a handful of the figures considered in Ardmore Shipping and EuroDry'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 EDRY is an impressive value stock right now.
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Are Investors Undervaluing Ardmore Shipping (ASC) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Ardmore Shipping (ASC - Free Report) is a stock many investors are watching right now. ASC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 5.27, while its industry has an average P/E of 6.19. Over the last 12 months, ASC's Forward P/E has been as high as 8.45 and as low as 3.53, with a median of 6.20.
We should also highlight that ASC has a P/B ratio of 1.16. 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. This stock's P/B looks solid versus its industry's average P/B of 1.28. ASC's P/B has been as high as 1.64 and as low as 0.96, with a median of 1.12, over the past year.
Finally, investors should note that ASC has a P/CF ratio of 3.35. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ASC's P/CF compares to its industry's average P/CF of 5.36. ASC's P/CF has been as high as 5.10 and as low as 2.19, with a median of 2.98, all within the past year.
Investors could also keep in mind EuroDry (EDRY - Free Report) , an Transportation - Shipping stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.
EuroDry sports a P/B ratio of 0.49 as well; this compares to its industry's price-to-book ratio of 1.28. In the past 52 weeks, EDRY's P/B has been as high as 0.52, as low as 0.35, with a median of 0.40.
These are just a handful of the figures considered in Ardmore Shipping and EuroDry'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 EDRY is an impressive value stock right now.