Is Global Ship Lease (GSL) Stock Undervalued Right Now?

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 value investors might notice is Global Ship Lease (GSL). GSL is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 2.60. This compares to its industry's average Forward P/E of 3.85. GSL's Forward P/E has been as high as 6.06 and as low as 2.04, with a median of 3.40, all within the past year.

Another valuation metric that we should highlight is GSL's P/B ratio of 0.86. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.22. Within the past 52 weeks, GSL's P/B has been as high as 1.54 and as low as 0.66, with a median of 1.21.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. GSL has a P/S ratio of 1.2. This compares to its industry's average P/S of 1.22.

Finally, we should also recognize that GSL has a P/CF ratio of 2.51. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 3.28. GSL's P/CF has been as high as 7.27 and as low as 1.94, with a median of 4.74, all within the past year.

If you're looking for another solid Transportation - Shipping value stock, take a look at Safe Bulkers (SB). SB is a # 1 (Strong Buy) stock with a Value score of A.

Safe Bulkers also has a P/B ratio of 0.64 compared to its industry's price-to-book ratio of 1.22. Over the past year, its P/B ratio has been as high as 1.12, as low as 0.55, with a median of 0.74.

Value investors will likely look at more than just these metrics, but the above data helps show that Global Ship Lease and Safe Bulkers are likely undervalued currently. And when considering the strength of its earnings outlook, GSL and SB sticks out as one of the market's strongest value stocks.

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Global Ship Lease, Inc. (GSL) : Free Stock Analysis Report
 
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