We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are These Transportation Stocks Undervalued Right Now?
Read MoreHide Full Article
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.
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.
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 company value investors might notice is Navios Maritime Partners (NMM - Free Report) . NMM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 1.52. This compares to its industry's average Forward P/E of 4.12. Over the past 52 weeks, NMM's Forward P/E has been as high as 5.06 and as low as 1.45, with a median of 2.57.
We should also highlight that NMM has a P/B ratio of 0.42. 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 solid versus its industry's average P/B of 1. NMM's P/B has been as high as 0.69 and as low as 0.11, with a median of 0.42, 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. 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 1.02. This compares to its industry's average P/S of 1.34.
Finally, investors should note that NMM has a P/CF ratio of 1.70. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. NMM's current P/CF looks attractive when compared to its industry's average P/CF of 6.09. NMM's P/CF has been as high as 352.53 and as low as -10.27, with a median of 2.19, all within the past year.
If you're looking for another solid Transportation - Shipping value stock, take a look at ZIM Integrated Shipping Services (ZIM - Free Report) . ZIM is a # 1 (Strong Buy) stock with a Value score of A.
Furthermore, ZIM Integrated Shipping Services holds a P/B ratio of 1.98 and its industry's price-to-book ratio is 1. ZIM's P/B has been as high as 11.79, as low as -21.22, with a median of 2.43 over the past 12 months.
These are just a handful of the figures considered in Navios Maritime Partners and ZIM Integrated Shipping Services'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 and ZIM is an impressive value stock right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Are These Transportation Stocks Undervalued Right Now?
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.
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.
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 company value investors might notice is Navios Maritime Partners (NMM - Free Report) . NMM is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 1.52. This compares to its industry's average Forward P/E of 4.12. Over the past 52 weeks, NMM's Forward P/E has been as high as 5.06 and as low as 1.45, with a median of 2.57.
We should also highlight that NMM has a P/B ratio of 0.42. 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 solid versus its industry's average P/B of 1. NMM's P/B has been as high as 0.69 and as low as 0.11, with a median of 0.42, 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. 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 1.02. This compares to its industry's average P/S of 1.34.
Finally, investors should note that NMM has a P/CF ratio of 1.70. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. NMM's current P/CF looks attractive when compared to its industry's average P/CF of 6.09. NMM's P/CF has been as high as 352.53 and as low as -10.27, with a median of 2.19, all within the past year.
If you're looking for another solid Transportation - Shipping value stock, take a look at ZIM Integrated Shipping Services (ZIM - Free Report) . ZIM is a # 1 (Strong Buy) stock with a Value score of A.
Furthermore, ZIM Integrated Shipping Services holds a P/B ratio of 1.98 and its industry's price-to-book ratio is 1. ZIM's P/B has been as high as 11.79, as low as -21.22, with a median of 2.43 over the past 12 months.
These are just a handful of the figures considered in Navios Maritime Partners and ZIM Integrated Shipping Services'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 and ZIM is an impressive value stock right now.