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Is Eagle Bulk Shipping (EGLE) a Great Value Stock Right Now?

·3-min read

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Eagle Bulk Shipping (EGLE). EGLE is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 3.96, while its industry has an average P/E of 4.18. Over the past year, EGLE's Forward P/E has been as high as 6.33 and as low as 2.92, with a median of 4.07.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. EGLE has a P/S ratio of 1.29. This compares to its industry's average P/S of 1.47.

Finally, our model also underscores that EGLE has a P/CF ratio of 3.56. 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. EGLE's P/CF compares to its industry's average P/CF of 3.57. Within the past 12 months, EGLE's P/CF has been as high as 13.49 and as low as 2.50, with a median of 3.89.

Seanergy Maritime Holdings (SHIP) may be another strong Transportation - Shipping stock to add to your shortlist. SHIP is a # 2 (Buy) stock with a Value grade of A.

Furthermore, Seanergy Maritime Holdings holds a P/B ratio of 0.70 and its industry's price-to-book ratio is 1.20. SHIP's P/B has been as high as 1.19, as low as 0.54, with a median of 0.74 over the past 12 months.

Value investors will likely look at more than just these metrics, but the above data helps show that Eagle Bulk Shipping and Seanergy Maritime Holdings are likely undervalued currently. And when considering the strength of its earnings outlook, EGLE and SHIP sticks out as one of the market's strongest value stocks.


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Eagle Bulk Shipping Inc. (EGLE) : Free Stock Analysis Report
 
Seanergy Maritime Holdings Corp (SHIP) : Free Stock Analysis Report
 
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