StealthGas Inc. (NASDAQ:GASS): One of the Best NASDAQ Stocks with the Lowest P/E Ratios

We recently published a list of the 15 NASDAQ Stocks with the Lowest P/E Ratios. In this article, we are going to take a look at where StealthGas Inc. (NASDAQ:GASS) stands against the other NASDAQ stocks.

A Revised U.S. Economic Outlook

At the start of the year, strategists and economists projected the U.S. economy to perform better in 2025 with the U.S. stock market positioned for another year of above-trend growth. Now, economic growth projections are moving slightly to the lower end of the previous forecasts.

Economic forecasting teams from Morgan Stanley, Goldman Sachs, and others revised their 2025 GDP projections lower. Morgan Stanley now projects a 1.5% growth in 2025, and Goldman expects a 1.7% growth.

The year-end targets for the S&P 500 might be too optimistic. If thingsgo the way they are being projected, the S&P 500 will potentially underperform compared to growth in 2024, impacting the NASDAQ 100 index as well. So far in 2025, the S&P 500 has plunged over 3.30% while the NASDAQ 100 index has dropped over 5.50%, as of March 18. The first quarter is about to end and markets are volatile now with the new U.S. administration implementing its tariff policy.

The head of US equity strategy at RBC Capital Markets, Lori Calvasina, pointed out that the U.S. equity market can hold the drop if things go south.

“We have seen the U.S. equity market on a rocky path higher through year-end, and have believed that our 6,600 can absorb a 5-10% drawdown,” Calvasina wrote in a note to clients on March 9. She further added, “risks of a drawdown of more than 10% have admittedly grown, however. If that occurs, we see a ‘growth scare’ of a 14-20% decline from the peak as most likely, which could shift us into our bear case.”

President Donald Trump addressed Congress with potential disturbance to the economy from his tariff policies. In an interview with Fox Business on March 9, President Trump said:

“There is a period of transition because what we’re doing is very big … We’re bringing wealth back to America. That’s a big thing … it takes a little time, but I think it should be great for us.”

Our Methodology

To compile our list of NASDAQ stocks with the lowest P/E ratios, we first compiled a list of 40 NASDAQ listed firms with a forward P/E ratio lower than 10 and a market capitalization greater than $150 million. Then, we shortlisted the 15 stocks with the lowest P/E ratios and ranked them based on the number of hedge fund holders, as of Q4 2024.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

StealthGas Inc. (NASDAQ:GASS)

Forward P/E ratio: 6.77

No. of Hedge Fund Holders: 11

StealthGas Inc. (NASDAQ:GASS) offers international seaborne transportation services to liquefied petroleum gas (LPG) producers and users. It also provides crude oil and product carriers to oil producers, refineries, and commodities traders through its fleet. StealthGas’ fleet consists of almost 50 LPG carriers.

StealthGas Inc. (NASDAQ:GASS) had a remarkable year with record revenues reported in 2024. The company posted revenues of $167.3 million, marking the highest in the company’s history. The company achieved yet another record profit of $77 million, continuing a three-year streak of record profits. This helped in an improved profit margin of 42% for the year compared to a 36% profit margin in 2023. StealthGas is now close to being net debt-free after it reduced its debt below $100 million for the first time. For 2025, the company has already secured more than $200 million in future revenues with 70% of fleet days covered. As StealthGas continues to enhance its operational efficiency and increase its revenues, the management has authorized an additional $10.5 million for share repurchases, reflecting a commitment to returning value to shareholders.

Overall GASS ranks 14th on our list of the NASDAQ stocks with the lowest P/E ratios. While we acknowledge the potential of GASS as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than GASS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks To Invest In According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.