Are Investors Undervaluing Global Ship Lease (GSL) Right Now?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Global Ship Lease (GSL). GSL is currently sporting a Zacks Rank #2 (Buy) and an A for Value.

Another valuation metric that we should highlight is GSL's P/B ratio of 0.69. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.74. Within the past 52 weeks, GSL's P/B has been as high as 0.71 and as low as 0.41, with a median of 0.58.

Another great Transportation - Shipping stock you could consider is TEEKAY TANK LTD (TNK), which is a Zacks Rank of #1 (Strong Buy) stock with a Value Score of A.

TEEKAY TANK LTD is currently trading with a Forward P/E ratio of 8.76 while its PEG ratio sits at 1.80. Both of the company's metrics compare favorably to its industry's average P/E of 12.88 and average PEG ratio of 0.64.

Over the last 12 months, TNK's P/E has been as high as 9.18, as low as 3.59, with a median of 5.65, and its PEG ratio has been as high as 2.03, as low as 1.20, with a median of 1.62.

Furthermore, TEEKAY TANK LTD holds a P/B ratio of 0.99 and its industry's price-to-book ratio is 1.74. TNK's P/B has been as high as 1.22, as low as 0.65, with a median of 0.82 over the past 12 months.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Global Ship Lease and TEEKAY TANK LTD are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GSL and TNK feels like a great value stock at the moment.

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

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