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Is Diana Shipping (DSX) Stock Undervalued Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 stock to keep an eye on is Diana Shipping (DSX - Free Report) . DSX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Another valuation metric that we should highlight is DSX's P/B ratio of 0.63. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. DSX's current P/B looks attractive when compared to its industry's average P/B of 0.82. Over the past year, DSX's P/B has been as high as 0.66 and as low as 0.41, with a median of 0.54.

Finally, our model also underscores that DSX has a P/CF ratio of 5.19. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 7.47. Within the past 12 months, DSX's P/CF has been as high as 5.31 and as low as -1.25, with a median of 4.24.

Value investors will likely look at more than just these metrics, but the above data helps show that Diana Shipping is likely undervalued currently. And when considering the strength of its earnings outlook, DSX sticks out at as one of the market's strongest value stocks.


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