Should Value Investors Buy Eagle Bulk Shipping (EGLE) Stock?

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

Eagle Bulk Shipping (EGLE) is a stock many investors are watching right now. EGLE is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 4.16 right now. For comparison, its industry sports an average P/E of 4.24. 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 4.08.

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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. EGLE has a P/S ratio of 1.38. This compares to its industry's average P/S of 1.45.

Investors could also keep in mind Seanergy Maritime Holdings (SHIP), an Transportation - Shipping stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Seanergy Maritime Holdings also has a P/B ratio of 0.77 compared to its industry's price-to-book ratio of 1.27. Over the past year, its P/B ratio has been as high as 1.19, as low as 0.54, with a median of 0.74.

These are only a few of the key metrics included in Eagle Bulk Shipping and Seanergy Maritime Holdings strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, EGLE and SHIP look like an impressive value stock at the moment.

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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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