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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 to watch right now is Diamond S Shipping Inc. . DSSI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another valuation metric that we should highlight is DSSI's P/B ratio of 0.33. The P/B ratio pits a stock's market value against 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. DSSI's P/B has been as high as 0.59 and as low as 0.30, with a median of 0.39, over the past year.
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. DSSI has a P/S ratio of 0.6. This compares to its industry's average P/S of 0.69.
Finally, we should also recognize that DSSI has a P/CF ratio of 2.69. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.95. Over the past year, DSSI's P/CF has been as high as 46.92 and as low as 2.38, with a median of 16.46.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Diamond S Shipping Inc. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DSSI feels like a great value stock at the moment.
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Is Diamond S Shipping Inc. (DSSI) a Great Value Stock Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 to watch right now is Diamond S Shipping Inc. . DSSI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another valuation metric that we should highlight is DSSI's P/B ratio of 0.33. The P/B ratio pits a stock's market value against 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. DSSI's P/B has been as high as 0.59 and as low as 0.30, with a median of 0.39, over the past year.
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. DSSI has a P/S ratio of 0.6. This compares to its industry's average P/S of 0.69.
Finally, we should also recognize that DSSI has a P/CF ratio of 2.69. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.95. Over the past year, DSSI's P/CF has been as high as 46.92 and as low as 2.38, with a median of 16.46.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Diamond S Shipping Inc. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, DSSI feels like a great value stock at the moment.