Is StealthGas (GASS) a Great Value Stock Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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.
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.
StealthGas (GASS) is a stock many investors are watching right now. GASS is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 2.64. This compares to its industry's average Forward P/E of 7.02. Over the last 12 months, GASS's Forward P/E has been as high as 43.03 and as low as 2.35, with a median of 7.55.
Investors should also recognize that GASS has a P/B ratio of 0.19. 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 solid versus its industry's average P/B of 0.44. Over the past year, GASS's P/B has been as high as 0.27 and as low as 0.12, with a median of 0.19.
Value investors will likely look at more than just these metrics, but the above data helps show that StealthGas is likely undervalued currently. And when considering the strength of its earnings outlook, GASS sticks out at as one of the market's strongest value stocks.
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