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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
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 stock to keep an eye on is Navios Maritime Partners LP (NMM). NMM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 3.40, while its industry has an average P/E of 6.67. Over the past 52 weeks, NMM's Forward P/E has been as high as 4.82 and as low as 1, with a median of 2.66.
Another notable valuation metric for NMM is its P/B ratio of 0.40. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. NMM's current P/B looks attractive when compared to its industry's average P/B of 0.44. Over the past year, NMM's P/B has been as high as 0.51 and as low as 0.07, with a median of 0.12.
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 1.15. This compares to its industry's average P/S of 1.2.
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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Navios Maritime Partners LP (NMM) : Free Stock Analysis Report
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