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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Navios Maritime Partners LP (NMM - Free Report) . NMM is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. NMM has a P/S ratio of 0.62. This compares to its industry's average P/S of 1.04.
Finally, our model also underscores that NMM has a P/CF ratio of 3.96. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 9.48. Within the past 12 months, NMM's P/CF has been as high as 8.47 and as low as 3.45, with a median of 4.84.
Value investors will likely look at more than just these metrics, but the above data helps show that Navios Maritime Partners LP is likely undervalued currently. And when considering the strength of its earnings outlook, NMM sticks out at as one of the market's strongest value stocks.