Back to top

Image: Bigstock

Should Value Investors Buy Euroseas (ESEA) Stock?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 value investors might notice is Euroseas (ESEA - Free Report) . ESEA is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 3.29, while its industry has an average P/E of 6.60. Over the last 12 months, ESEA's Forward P/E has been as high as 5.36 and as low as 1.91, with a median of 2.70.

Another notable valuation metric for ESEA is its P/B ratio of 0.92. Investors use the P/B ratio to look at a stock's market value versus 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 1.33. ESEA's P/B has been as high as 1.08 and as low as 0.51, with a median of 0.77, over the past year.

Finally, our model also underscores that ESEA has a P/CF ratio of 2.24. 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. This stock's P/CF looks attractive against its industry's average P/CF of 4.65. Over the past year, ESEA's P/CF has been as high as 2.64 and as low as 1.23, with a median of 1.88.

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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Euroseas Ltd. (ESEA) - free report >>

Published in