Should Value Investors Buy Pangaea Logistics Solutions (PANL) Stock?

·3-min read

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is Pangaea Logistics Solutions (PANL). PANL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 3.62, while its industry has an average P/E of 3.93. Over the past year, PANL's Forward P/E has been as high as 7.56 and as low as 2.53, with a median of 4.50.

Another notable valuation metric for PANL is its P/B ratio of 0.73. The P/B is a method of comparing a stock's market value to 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 1.07. Within the past 52 weeks, PANL's P/B has been as high as 1.04 and as low as 0.56, with a median of 0.76.

Finally, investors should note that PANL has a P/CF ratio of 2.36. 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 stock's P/CF looks attractive against its industry's average P/CF of 3.62. PANL's P/CF has been as high as 5.61 and as low as 1.84, with a median of 2.62, all within the past year.

Safe Bulkers (SB) may be another strong Transportation - Shipping stock to add to your shortlist. SB is a # 2 (Buy) stock with a Value grade of A.

Safe Bulkers also has a P/B ratio of 0.70 compared to its industry's price-to-book ratio of 1.07. Over the past year, its P/B ratio has been as high as 1.12, as low as 0.58, with a median of 0.78.

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

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