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 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.
Pangaea Logistics Solutions (PANL) is a stock many investors are watching right now. PANL is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value.
Another notable valuation metric for PANL is its P/B ratio of 0.73. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.35. Over the past 12 months, PANL's P/B has been as high as 0.96 and as low as 0.56, with a median of 0.73.
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. PANL has a P/S ratio of 0.62. This compares to its industry's average P/S of 1.48.
These are only a few of the key metrics included in Pangaea Logistics Solutions'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, PANL looks like an impressive value stock at the moment.
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Pangaea Logistics Solutions Ltd. (PANL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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