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Are Investors Undervaluing Navigator Holdings (NVGS) Right Now?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Navigator Holdings (NVGS - Free Report) . NVGS is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.26, which compares to its industry's average of 10.88. Over the past year, NVGS's Forward P/E has been as high as 12.42 and as low as 6.23, with a median of 9.07.

Another valuation metric that we should highlight is NVGS's P/B ratio of 0.91. 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 1.60. Over the past 12 months, NVGS's P/B has been as high as 1.00 and as low as 0.60, with a median of 0.89.

Finally, our model also underscores that NVGS has a P/CF ratio of 5.04. 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. NVGS's current P/CF looks attractive when compared to its industry's average P/CF of 7.31. Over the past year, NVGS's P/CF has been as high as 5.50 and as low as 3.36, with a median of 4.90.

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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