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Is Euroseas (ESEA) Stock Undervalued 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Euroseas (ESEA - Free Report) . ESEA is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 2.62, while its industry has an average P/E of 6.60. ESEA's Forward P/E has been as high as 5.39 and as low as 1.91, with a median of 3.06, all within the past year.

Another notable valuation metric for ESEA is its P/B ratio of 0.77. The P/B ratio pits a stock's market value against 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 1.43. Over the past 12 months, ESEA's P/B has been as high as 1.08 and as low as 0.55, with a median of 0.81.

Finally, investors should note that ESEA has a P/CF ratio of 1.99. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 4.08. Within the past 12 months, ESEA's P/CF has been as high as 2.64 and as low as 1.43, with a median of 2.01.

These are just a handful of the figures considered in Euroseas'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 is an impressive value stock right now.


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