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Are Investors Undervaluing StealthGas (GASS) 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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 #1 (Strong Buy) and an A for Value.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GASS has a P/S ratio of 0.67. This compares to its industry's average P/S of 0.68.

Finally, investors will want to recognize that GASS has a P/CF ratio of 2.28. 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. GASS's P/CF compares to its industry's average P/CF of 7.95. Over the past year, GASS's P/CF has been as high as 4.77 and as low as 1.91, with a median of 3.62.

These are only a few of the key metrics included in StealthGas's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, GASS looks like an impressive value stock at the moment.


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