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

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.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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.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 to watch right now is Global Ship Lease (GSL). GSL is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 3.05 right now. For comparison, its industry sports an average P/E of 6.82. Over the past 52 weeks, GSL's Forward P/E has been as high as 3.17 and as low as 1.89, with a median of 2.60. Investors should also recognize that GSL has a P/B ratio of 0.64. 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. GSL's current P/B looks attractive when compared to its industry's average P/B of 1.50. 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.Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GSL has a P/S ratio of 1.42. This compares to its industry's average P/S of 1.44.Finally, investors will want to recognize that GSL has a P/CF ratio of 2.11. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. GSL's current P/CF looks attractive when compared to its industry's average P/CF of 4.92. Within the past 12 months, GSL's P/CF has been as high as 2.19 and as low as 1.31, with a median of 1.82.Value investors will likely look at more than just these metrics, but the above data helps show that Global Ship Lease is likely undervalued currently. And when considering the strength of its earnings outlook, GSL sticks out as one of the market's strongest value stocks.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Global Ship Lease, Inc. (GSL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks