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Is Euroseas (ESEA) Stock Undervalued 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Euroseas (ESEA - Free Report) . ESEA is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ESEA has a P/S ratio of 0.99. This compares to its industry's average P/S of 1.06.

Finally, we should also recognize that ESEA has a P/CF ratio of 1.55. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. ESEA's current P/CF looks attractive when compared to its industry's average P/CF of 2.80. Within the past 12 months, ESEA's P/CF has been as high as 9.87 and as low as 1.43, with a median of 3.08.

Another great Transportation - Shipping stock you could consider is Tsakos Energy Navigation , which is a # 2 (Buy) stock with a Value Score of A.

Tsakos Energy Navigation also has a P/B ratio of 0.13 compared to its industry's price-to-book ratio of 1.07. Over the past year, its P/B ratio has been as high as 0.15, as low as 0.10, with a median of 0.11.

These are just a handful of the figures considered in Euroseas and Tsakos Energy Navigation'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 and TNP is an impressive value stock right now.


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