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Are Investors Undervaluing Pangaea Logistics Solutions (PANL) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 company value investors might notice is Pangaea Logistics Solutions (PANL - Free Report) . PANL is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.

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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PANL has a P/S ratio of 0.79. This compares to its industry's average P/S of 2.19.

Finally, we should also recognize that PANL has a P/CF ratio of 7.51. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 10.15. Over the past 52 weeks, PANL's P/CF has been as high as 7.82 and as low as 3.66, with a median of 5.50.

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

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