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Should Value Investors Buy Euroseas (ESEA) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Euroseas (ESEA - Free Report) . ESEA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 2.72. This compares to its industry's average Forward P/E of 6.01. Over the past year, ESEA's Forward P/E has been as high as 3.66 and as low as 1.81, with a median of 2.27.

Investors should also recognize that ESEA has a P/B ratio of 0.88. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.39. Over the past 12 months, ESEA's P/B has been as high as 1.08 and as low as 0.64, with a median of 0.79.

Finally, investors will want to recognize that ESEA has a P/CF ratio of 1.83. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ESEA's P/CF compares to its industry's average P/CF of 5.75. Over the past 52 weeks, ESEA's P/CF has been as high as 2.26 and as low as 1.06, with a median of 1.51.

Another great Transportation - Shipping stock you could consider is Teekay Tankers (TNK - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Teekay Tankers is trading at a forward earnings multiple of 4 at the moment, with a PEG ratio of 1.33. This compares to its industry's average P/E of 6.01 and average PEG ratio of 0.40.

TNK's Forward P/E has been as high as 7.12 and as low as 3.29, with a median of 4.24. During the same time period, its PEG ratio has been as high as 2.37, as low as 1.10, with a median of 1.41.

Furthermore, Teekay Tankers holds a P/B ratio of 1.21 and its industry's price-to-book ratio is 1.39. TNK's P/B has been as high as 1.51, as low as 0.91, with a median of 1.11 over the past 12 months.

These are just a handful of the figures considered in Euroseas and Teekay 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 ESEA and TNK is an impressive value stock right now.


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