Are Investors Undervaluing Euroseas (ESEA) Right Now?

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 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 stock to keep an eye on is Euroseas (ESEA). ESEA is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 3.62. This compares to its industry's average Forward P/E of 9.87. Over the past 52 weeks, ESEA's Forward P/E has been as high as 5.36 and as low as 1.91, with a median of 2.70.

Another notable valuation metric for ESEA is its P/B ratio of 1.09. 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 attractive against its industry's average P/B of 1.97. Over the past 12 months, ESEA's P/B has been as high as 1.12 and as low as 0.51, with a median of 0.77.

Finally, investors should note that ESEA has a P/CF ratio of 3.02. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.42. ESEA's P/CF has been as high as 3.12 and as low as 1.23, with a median of 1.96, all within the past year.

Another great Transportation - Shipping stock you could consider is Navigator Holdings (NVGS), which is a Zacks Rank of #1 (Strong Buy) stock with a Value Score of A.

Navigator Holdings sports a P/B ratio of 0.91 as well; this compares to its industry's price-to-book ratio of 1.97. In the past 52 weeks, NVGS's P/B has been as high as 1.00, as low as 0.60, with a median of 0.89.

These are only a few of the key metrics included in Euroseas and Navigator Holdings 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 NVGS look like an impressive value stock at the moment.

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This article originally published on Zacks Investment Research (zacks.com).

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