Yahoo Finance Should Value Investors Buy Navios Maritime Partners (NMM) Stock?
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.
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.
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.
One company value investors might notice is Navios Maritime Partners (NMM). NMM is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 2.75. This compares to its industry's average Forward P/E of 6.41. NMM's Forward P/E has been as high as 3.13 and as low as 1.14, with a median of 1.75, all within the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. NMM has a P/S ratio of 0.95. This compares to its industry's average P/S of 1.23.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Navios Maritime Partners is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, NMM feels like a great value stock at the moment.
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Navios Maritime Partners LP (NMM) : Free Stock Analysis Report
