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Is Navios Maritime Partners LP (NMM) a Great Value Stock Right Now?

Zacks Equity Research

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is Navios Maritime Partners LP (NMM). NMM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A.

Another notable valuation metric for NMM is its P/B ratio of 0.26. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 0.76. NMM's P/B has been as high as 0.30 and as low as 0.17, with a median of 0.23, over the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. NMM has a P/S ratio of 0.91. This compares to its industry's average P/S of 1.11.

Finally, we should also recognize that NMM has a P/CF ratio of 2.72. 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. NMM's P/CF compares to its industry's average P/CF of 7.24. NMM's P/CF has been as high as 5.88 and as low as 2.34, with a median of 3.01, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Navios Maritime Partners LP is likely undervalued currently. And when considering the strength of its earnings outlook, NMM sticks out at as one of the market's strongest value stocks.


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