Should Value Investors Buy Euroseas (ESEA) 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 value investors might notice is Euroseas (ESEA). ESEA is currently holding a Zacks Rank #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 3.56. This compares to its industry's average Forward P/E of 6.88. Over the last 12 months, ESEA's Forward P/E has been as high as 5.36 and as low as 1.91, with a median of 2.70.
We should also highlight that ESEA has a P/B ratio of 1.08. 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 1.52. Over the past 12 months, ESEA's P/B has been as high as 1.12 and as low as 0.51, with a median of 0.77.
Finally, investors should note that ESEA has a P/CF ratio of 2.99. 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. ESEA's current P/CF looks attractive when compared to its industry's average P/CF of 5.91. Over the past year, ESEA's P/CF has been as high as 3.12 and as low as 1.23, with a median of 1.96.
These are just a handful of the figures considered in Euroseas'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 ESEA is an impressive value stock right now.
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Euroseas Ltd. (ESEA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Source Zacks-com
