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Are Investors Undervaluing StealthGas (GASS) 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, 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.

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.

One stock to keep an eye on is StealthGas (GASS - Free Report) . GASS is currently sporting a Zacks Rank of #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. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GASS has a P/S ratio of 0.99. This compares to its industry's average P/S of 1.18.

Finally, investors will want to recognize that GASS has a P/CF ratio of 3.88. 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 7.95. GASS's P/CF has been as high as 4.77 and as low as 3.12, with a median of 3.75, all within the past year.

These are only a few of the key metrics included in StealthGas'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, GASS looks like an impressive value stock at the moment.


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