Are Investors Undervaluing Navios Maritime Partners LP (NMM) Right Now?

NMM

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Navios Maritime Partners LP (NMM - Free Report) is a stock many investors are watching right now. NMM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. 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 0.81. This compares to its industry's average P/S of 1.14.

Finally, investors will want to recognize that NMM has a P/CF ratio of 5.27. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. NMM's current P/CF looks attractive when compared to its industry's average P/CF of 9.93. Over the past 52 weeks, NMM's P/CF has been as high as 8.47 and as low as 3.45, with a median of 4.78.

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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