Greek Hope: 3 Value Stocks To Benefit From A Debt Deal

There is growing optimism for the handling of Greece’s debt, with a deal possibly being reached as early as this week. Not only are Greek stocks higher as a result, but the European and world market in general has been lifted up today by news of a potential debt deal being reached.

While hopes are running high, investors are undoubtedly asking how they can benefit from this surge in optimism for the Greek market.

Greek stocks in focus

Well, let’s start with Greece, as they are to benefit from finally escaping from the notion that they’ll drop out of the Euro zone and default on their debt. The Global X FTSE Greece 20 (NYSE:GREK) is up 8 % today on news of the country making progress towards a deal. This news is great for the country, and the ETF illustrates this well. One of biggest holdings in the fund is the National Bank of Greece .

As of 2014, share prices have taken a dive, dropping 77.43% until now. Today, shares of the bank are surging 18% higher, which makes sense since the bank’s risk has a lot to do with currency uncertainty and the dire Greek debt situation in general. As the health of the National Bank of Greece reflects much of the financial condition in the country, this massive surge is definitely an encouraging sign that a deal can be reached soon, and that the country can make a turn-around for the better in general.

If a deal is to take place to reconcile Greek debt, value stocks should be on your radar, since these stocks are bound for redemption after taking a beating over the last few years. Whether it’s a PE less than 6, a price to book under 1, or a price to sales under 1, each of these stocks has their own unique appeal, while all these stocks share similar value traits as well. Without any further ado, here are three Greek stocks with value characteristics to consider in the event a deal is reached soon.

Aegean Marine Petroleum Network (NYSE:ANW)

Aegean Marine Petroleum supplies marine fuel and lubricants to ships and ports at sea. The stock is a Zacks Rank #1 (Strong Buy). It’s worth noting that the company has sales to assets of 3.75, and that EPS is projected to grow by 42.53% this year.

The company has a grade of “A” for Value in the Style Scores, and rightly so. After all, the stock trades at a price to earnings multiple of just 11.65, while the industry average is 15.2. The price to book is 1.08, which is a pretty encouraging indication that there is value in the company. The company also has a ridiculously low price to sales of 0.11.

Share prices have climbed up 24% year over year, and there is still a lot of value present which makes the stock an attractive buy. Aegean Marine reports its earnings on 8/12/15.

Tsakos Energy Navigation Ltd (NYSE:TNP)

Tsakos Energy Navigation engages in supplying international seaborne crude oil and petroleum product transportation services. The stock holds a Zacks Rank #2 (Buy). It doles out a considerable dividend yield of 2.41%. Not only is this stock a great value pick, but its growth prospects are pretty attractive as well.

The projected sales growth for this year is 25.52%. Earnings per share are estimated to be 244.61% higher than last year. The company has a net margin of 10.82%, much higher than the industry average of 4.01%.

The company trades at a forward PE of 7.04. It also has a PEG of 0.7, suggesting that the amount of growth the company experiences more than justifies the price that it is currently trading for. It trades at a price to sales multiple of 1.61, and at a price to book of 0.71.

There have been 10 upward estimate revisions in the last 60 days by analysts for the current quarter. 90 days ago, our consensus estimate led us to expect earnings of $0.19 for this quarter. Our consensus has since been revised upwards, and now expects earnings of $0.35 per share for the quarter. TNP reports its earnings on 8/3/15.

Danaos Corporation (NYSE:DAC)

Danaos Corporation is a shipping company that offers operational support to liner companies and charterers globally. DAC is a Zacks Rank #1 (Strong Buy). Year over year EPS is estimated to be 111.51% higher than last year.

The company has a PE of 5.57. It also trades at a price/book of 0.97. These suggest that the stock is trading at a discount. A price to sales of 1.28 backs up our value assumption nicely. The company has an earnings yield of 17.87%.

There has been one analyst in the last 60 days who has revised their EPS estimate upwards for this quarter. DAC has beaten our earnings consensus in each of the last three quarters. Not only has it just posted three consecutive beats, but it has done so by an average of 33.53% per quarter. Danaos reports its earnings on 7/27/15.

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