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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.
One company to watch right now is Global Ship Lease (GSL). GSL is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.
Another notable valuation metric for GSL is its P/B ratio of 0.69. 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. This stock's P/B looks attractive against its industry's average P/B of 1.56. Over the past year, GSL's P/B has been as high as 0.71 and as low as 0.41, with a median of 0.58.
Finally, investors will want to recognize that GSL has a P/CF ratio of 2.25. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 5.98. Within the past 12 months, GSL's P/CF has been as high as 2.34 and as low as 1.31, with a median of 1.82.
These are only a few of the key metrics included in Global Ship Lease'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, GSL looks like an impressive value stock at the moment.
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Global Ship Lease, Inc. (GSL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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