Back to top

Image: Bigstock

Should Value Investors Buy Euroseas (ESEA) Stock?

Read MoreHide Full Article

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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

Euroseas (ESEA - Free Report) is a stock many investors are watching right now. ESEA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 5.36, which compares to its industry's average of 7.80. Over the last 12 months, ESEA's Forward P/E has been as high as 5.39 and as low as 2.08, with a median of 3.32.

Another valuation metric that we should highlight is ESEA's P/B ratio of 1.08. Investors use the P/B ratio to look at a stock's market value versus 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 3.09. Over the past year, ESEA's P/B has been as high as 1.08 and as low as 0.68, with a median of 0.90.

If you're looking for another solid Transportation - Shipping value stock, take a look at Seanergy Maritime Holdings (SHIP - Free Report) . SHIP is a # 1 (Strong Buy) stock with a Value score of A.

Additionally, Seanergy Maritime Holdings has a P/B ratio of 1.02 while its industry's price-to-book ratio sits at 3.09. For SHIP, this valuation metric has been as high as 1.07, as low as 0.45, with a median of 0.73 over the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Euroseas and Seanergy Maritime Holdings are likely undervalued currently. And when considering the strength of its earnings outlook, ESEA and SHIP sticks out as one of the market's strongest value stocks.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Euroseas Ltd. (ESEA) - free report >>

Seanergy Maritime Holdings Corp (SHIP) - free report >>

Published in