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Are Investors Undervaluing Euroseas (ESEA) Right Now?

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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.

One stock to keep an eye on is Euroseas (ESEA - Free Report) . ESEA is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. ESEA has a P/S ratio of 1.03. This compares to its industry's average P/S of 1.09.

Finally, investors should note that ESEA has a P/CF ratio of 1.53. 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 3.04. Within the past 12 months, ESEA's P/CF has been as high as 9.87 and as low as 1.35, with a median of 2.64.

Another great Transportation - Shipping stock you could consider is Tsakos Energy Navigation , which is a # 1 (Strong Buy) stock with a Value Score of A.

Tsakos Energy Navigation sports a P/B ratio of 0.24 as well; this compares to its industry's price-to-book ratio of 1.16. In the past 52 weeks, TNP's P/B has been as high as 0.25, as low as 0.10, with a median of 0.13.

These are only a few of the key metrics included in Euroseas and Tsakos Energy Navigation strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, ESEA and TNP look like an impressive value stock at the moment.


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