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Are Investors Undervaluing Ardmore Shipping (ASC) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Ardmore Shipping (ASC - Free Report) is a stock many investors are watching right now. ASC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

We should also highlight that ASC has a P/B ratio of 0.47. 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. ASC's current P/B looks attractive when compared to its industry's average P/B of 0.86. Within the past 52 weeks, ASC's P/B has been as high as 0.97 and as low as 0.41, with a median of 0.68.

Finally, we should also recognize that ASC has a P/CF ratio of 4.89. 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. ASC's P/CF compares to its industry's average P/CF of 7.95. Over the past 52 weeks, ASC's P/CF has been as high as 17.80 and as low as -1,322.91, with a median of -33.93.

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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