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Are These Transportation Stocks a Great Value Stocks Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 - Free Report) . GASS is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GASS has a P/S ratio of 0.51. This compares to its industry's average P/S of 1.45.

Finally, our model also underscores that GASS has a P/CF ratio of 1.84. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.59. Over the past year, GASS's P/CF has been as high as 2.64 and as low as 1.80, with a median of 2.31.

ZIM Integrated Shipping Services (ZIM - Free Report) may be another strong Transportation - Shipping stock to add to your shortlist. ZIM is a # 1 (Strong Buy) stock with a Value grade of A.

ZIM Integrated Shipping Services sports a P/B ratio of 2.50 as well; this compares to its industry's price-to-book ratio of 1.10. In the past 52 weeks, ZIM's P/B has been as high as 11.79, as low as -21.22, with a median of 2.07.

These are only a few of the key metrics included in StealthGas and ZIM Integrated Shipping Services strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, GASS and ZIM look like an impressive value stock at the moment.


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