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Should Value Investors Buy Navigator Holdings (NVGS) Stock?

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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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 to watch right now is Navigator Holdings (NVGS - Free Report) . NVGS is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.

We should also highlight that NVGS has a P/B ratio of 0.87. 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 solid versus its industry's average P/B of 1.43. Over the past year, NVGS's P/B has been as high as 1.00 and as low as 0.60, with a median of 0.90.

Finally, our model also underscores that NVGS has a P/CF ratio of 4.80. 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. This stock's P/CF looks attractive against its industry's average P/CF of 4.83. Within the past 12 months, NVGS's P/CF has been as high as 5.62 and as low as 3.36, with a median of 4.93.

These are only a few of the key metrics included in Navigator Holdings's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, NVGS looks like an impressive value stock at the moment.


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