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Should Value Investors Buy Pangaea Logistics Solutions (PANL) Stock?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Pangaea Logistics Solutions (PANL - Free Report) is a stock many investors are watching right now. PANL is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.

Investors should also recognize that PANL has a P/B ratio of 0.77. 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. PANL's current P/B looks attractive when compared to its industry's average P/B of 2.02. Over the past year, PANL's P/B has been as high as 0.92 and as low as 0.56, with a median of 0.72.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. PANL has a P/S ratio of 0.7. This compares to its industry's average P/S of 2.01.

Finally, our model also underscores that PANL has a P/CF ratio of 7.51. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.81. PANL's P/CF has been as high as 7.82 and as low as 3.66, with a median of 5.50, all within the past year.

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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