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Are These Transportation Stocks a Great Value Stocks Right Now?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is Navios Maritime Partners (NMM - Free Report) . NMM is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 1.34, which compares to its industry's average of 3.98. Over the past 52 weeks, NMM's Forward P/E has been as high as 5.06 and as low as 1.34, with a median of 2.57.

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 0.88. This compares to its industry's average P/S of 1.34.

Finally, investors should note that NMM has a P/CF ratio of 1.48. 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 5.85. Over the past year, NMM's P/CF has been as high as 352.53 and as low as -10.23, with a median of 2.19.

ZIM Integrated Shipping Services (ZIM - Free Report) may be another strong Transportation - Shipping stock to add to your shortlist. ZIM is a # 1 (Strong Buy) stock with a Value grade of A.

Furthermore, ZIM Integrated Shipping Services holds a P/B ratio of 1.85 and its industry's price-to-book ratio is 0.96. ZIM's P/B has been as high as 11.79, as low as -21.22, with a median of 2 over the past 12 months.

These are only a few of the key metrics included in Navios Maritime Partners and ZIM Integrated Shipping Services strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, NMM and ZIM look like an impressive value stock at the moment.


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Navios Maritime Partners LP (NMM) - free report >>

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