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Is Global Ship Lease (GSL) 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.

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 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.

One company value investors might notice is Global Ship Lease (GSL - Free Report) . GSL is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 3.67, while its industry has an average P/E of 10.78. Over the past year, GSL's Forward P/E has been as high as 3.67 and as low as 3.13, with a median of 3.39.

Investors should also note that GSL holds a PEG ratio of 0.73. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. GSL's industry currently sports an average PEG of 1.74. Within the past year, GSL's PEG has been as high as 0.73 and as low as 0.63, with a median of 0.68.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Global Ship Lease is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GSL feels like a great value stock at the moment.


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