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Should Value Investors Buy Navios Maritime Partners LP (NMM) Stock?

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Zacks Equity Research
·2 min read
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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.

Navios Maritime Partners LP (NMM) is a stock many investors are watching right now. NMM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 3.13, while its industry has an average P/E of 6.54. Over the last 12 months, NMM's Forward P/E has been as high as 3.47 and as low as 0.90, with a median of 2.40.

Another notable valuation metric for NMM is its P/B ratio of 0.24. 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. This stock's P/B looks attractive against its industry's average P/B of 0.44. Over the past year, NMM's P/B has been as high as 0.24 and as low as 0.06, with a median of 0.11.

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 0.77. This compares to its industry's average P/S of 0.93.

These are just a handful of the figures considered in Navios Maritime Partners LP's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that NMM is an impressive value stock right now.


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