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

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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 stock to keep an eye on is Navios Maritime Partners LP (NMM). NMM is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 1.84, which compares to its industry's average of 4.90. Over the past 52 weeks, NMM's Forward P/E has been as high as 5.06 and as low as 1.75, with a median of 2.57.

Another valuation metric that we should highlight is NMM's P/B ratio of 0.47. The P/B ratio pits a stock's market value against 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 1.06. Over the past 12 months, NMM's P/B has been as high as 0.69 and as low as 0.10, with a median of 0.42.

Finally, we should also recognize that NMM has a P/CF ratio of 2.52. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. NMM's current P/CF looks attractive when compared to its industry's average P/CF of 6.33. NMM's P/CF has been as high as 352.53 and as low as -10.27, with a median of 2.35, 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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