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Are Investors Undervaluing Pangaea Logistics Solutions (PANL) 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

One stock to keep an eye on is Pangaea Logistics Solutions (PANL - Free Report) . PANL is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.

Another notable valuation metric for PANL is its P/B ratio of 0.69. 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 1.29. PANL's P/B has been as high as 0.98 and as low as 0.56, with a median of 0.74, over the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. PANL has a P/S ratio of 0.56. This compares to its industry's average P/S of 1.31.

These are only a few of the key metrics included in Pangaea Logistics Solutions's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PANL looks like an impressive value stock at the moment.


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