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Are Investors Undervaluing Global Ship Lease (GSL) 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Global Ship Lease (GSL - Free Report) is a stock many investors are watching right now. GSL is currently sporting a Zacks Rank #2 (Buy) and an A for Value.

Investors should also recognize that GSL has a P/B ratio of 0.69. The P/B ratio pits a stock's market value against 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 1.64. Over the past 12 months, GSL's P/B has been as high as 0.71 and as low as 0.41, with a median of 0.58.

Finally, investors will want to recognize that GSL has a P/CF ratio of 2.25. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 4.97. Over the past 52 weeks, GSL's P/CF has been as high as 2.34 and as low as 1.31, with a median of 1.82.

Value investors will likely look at more than just these metrics, but the above data helps show that Global Ship Lease is likely undervalued currently. And when considering the strength of its earnings outlook, GSL sticks out as one of the market's strongest value stocks.


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