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Is Ardmore Shipping (ASC) Stock Undervalued Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Ardmore Shipping (ASC - Free Report) is a stock many investors are watching right now. ASC is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 6.33, which compares to its industry's average of 6.59. ASC's Forward P/E has been as high as 10.92 and as low as 4.10, with a median of 7.23, all within the past year.
Investors should also recognize that ASC has a 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. ASC's current P/B looks attractive when compared to its industry's average P/B of 1.40. Over the past year, ASC's P/B has been as high as 1.32 and as low as 0.57, with a median of 0.74.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ASC has a P/S ratio of 1.33. This compares to its industry's average P/S of 1.48.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ardmore Shipping is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ASC feels like a great value stock at the moment.
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Is Ardmore Shipping (ASC) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Ardmore Shipping (ASC - Free Report) is a stock many investors are watching right now. ASC is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 6.33, which compares to its industry's average of 6.59. ASC's Forward P/E has been as high as 10.92 and as low as 4.10, with a median of 7.23, all within the past year.
Investors should also recognize that ASC has a 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. ASC's current P/B looks attractive when compared to its industry's average P/B of 1.40. Over the past year, ASC's P/B has been as high as 1.32 and as low as 0.57, with a median of 0.74.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ASC has a P/S ratio of 1.33. This compares to its industry's average P/S of 1.48.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Ardmore Shipping is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, ASC feels like a great value stock at the moment.