Should Value Investors Buy StealthGas (GASS) Stock?
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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
One company to watch right now is StealthGas (GASS). GASS is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 6, while its industry has an average P/E of 6.86. GASS's Forward P/E has been as high as 43.03 and as low as 4.31, with a median of 9.55, all within the past year.
Another valuation metric that we should highlight is GASS's P/B ratio of 0.18. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. GASS's current P/B looks attractive when compared to its industry's average P/B of 0.44. GASS's P/B has been as high as 0.30 and as low as 0.12, with a median of 0.22, over the past year.
These are just a handful of the figures considered in StealthGas's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GASS is an impressive value stock right now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.