Is Navios Maritime Partners LP (NMM) a Great Value Stock Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to...
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Navios Maritime Partners LP (NMM). NMM is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 2.40 right now. For comparison, its industry sports an average P/E of 5.01. Over the past 52 weeks, NMM's Forward P/E has been as high as 5.06 and as low as 1.70, with a median of 2.57.
We should also highlight that NMM has a P/B ratio of 0.47. Investors use the P/B ratio to look at a stock's market value versus 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 1.07. Over the past year, NMM's P/B has been as high as 0.69 and as low as 0.09, with a median of 0.40.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. NMM has a P/S ratio of 1.67. This compares to its industry's average P/S of 1.7.
Finally, our model also underscores that NMM has a P/CF ratio of 2.56. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 6.53. Within the past 12 months, NMM's P/CF has been as high as 352.53 and as low as -10.27, with a median of 2.27.
These are only a few of the key metrics included in Navios Maritime Partners LP's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, NMM looks like an impressive value stock at the moment.
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