Published on 11 Aug 2022 on Simply Wall St. via Yahoo Finance

Castor Maritime Inc.'s (NASDAQ:CTRM) Share Price Boosted 36% But Its Business Prospects Need A Lift...

Those holding Castor Maritime Inc. (NASDAQ:CTRM) shares would be relieved that the share price has rebounded 36% in the last thirty days, but it needs to keep going to repair the recent damage it has caused to investor portfolios. But not all shareholders will be feeling jubilant, since the share price is still down a very disappointing 22% in the last twelve months.

Although its price has surged higher, given close to half the companies in the United States have price-to-earnings ratios (or "P/E's") above 16x, you may still consider Castor Maritime as a highly attractive investment with its 2.1x P/E ratio. However, the P/E might be quite low for a reason and it requires further investigation to determine if it's justified.

Castor Maritime certainly has been doing a great job lately as it's been growing earnings at a really rapid pace. It might be that many expect the strong earnings performance to degrade substantially, which has repressed the P/E. If you like the company, you'd be hoping this isn't the case so that you could potentially pick up some stock while it's out of favour.