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

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

Pangaea Logistics Solutions (PANL - Free Report) is a stock many investors are watching right now. PANL is currently sporting a Zacks Rank #2 (Buy) and an A for Value.

Another valuation metric that we should highlight is PANL's P/B ratio of 0.73. The P/B ratio pits a stock's market value against 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 1.35. Over the past year, PANL's P/B has been as high as 0.96 and as low as 0.56, with a median of 0.73.

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 popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. PANL has a P/S ratio of 0.62. This compares to its industry's average P/S of 1.48.

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

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