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Is Ardmore Shipping (ASC) a Great Value Stock 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 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.

Ardmore Shipping (ASC - Free Report) is a stock many investors are watching right now. ASC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Another valuation metric that we should highlight is ASC's P/B ratio of 0.59. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 0.86. ASC's P/B has been as high as 0.97 and as low as 0.41, with a median of 0.70, over the past year.

Finally, investors should note that ASC has a P/CF ratio of 6. 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 7.95. ASC's P/CF has been as high as 17.80 and as low as -1,319.73, with a median of -38.23, all within the past year.

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


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