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Navios Maritime Partners LP (NMM) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of Navios Maritime Partners LP (NMM - Free Report) ? Shares have been on the move with the stock up 12.6% over the past month. The stock hit a new 52-week high of $53.28 in the previous session. Navios Maritime Partners LP has gained 88.4% since the start of the year compared to the -3% move for the Zacks Transportation sector and the 23.5% return for the Zacks Transportation - Shipping industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 14, 2024, Navios Maritime Partners reported EPS of $2.32 versus consensus estimate of $2.05.
For the current fiscal year, Navios Maritime Partners is expected to post earnings of $15.20 per share on $1.34 billion in revenues. This represents a 22.09% change in EPS on a 2.24% change in revenues. For the next fiscal year, the company is expected to earn $18.80 per share on $1.47 billion in revenues. This represents a year-over-year change of 23.68% and 10.29%, respectively.
Valuation Metrics
Navios Maritime Partners may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Navios Maritime Partners has a Value Score of A. The stock's Growth and Momentum Scores are D and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 3.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 8.3X. On a trailing cash flow basis, the stock currently trades at 2.4X versus its peer group's average of 4.1X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Navios Maritime Partners currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Navios Maritime Partners meets the list of requirements. Thus, it seems as though Navios Maritime Partners shares could still be poised for more gains ahead.
How Does NMM Stack Up to the Competition?
Shares of NMM have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Costamare Inc. (CMRE - Free Report) . CMRE has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of C.
Earnings were strong last quarter. Costamare Inc. beat our consensus estimate by 5%, and for the current fiscal year, CMRE is expected to post earnings of $3.08 per share on revenue of $1.6 billion.
Shares of Costamare Inc. have gained 23% over the past month, and currently trade at a forward P/E of 5.24X and a P/CF of 3.95X.
The Transportation - Shipping industry may rank in the bottom 63% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for NMM and CMRE, even beyond their own solid fundamental situation.
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Navios Maritime Partners LP (NMM) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of Navios Maritime Partners LP (NMM - Free Report) ? Shares have been on the move with the stock up 12.6% over the past month. The stock hit a new 52-week high of $53.28 in the previous session. Navios Maritime Partners LP has gained 88.4% since the start of the year compared to the -3% move for the Zacks Transportation sector and the 23.5% return for the Zacks Transportation - Shipping industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on May 14, 2024, Navios Maritime Partners reported EPS of $2.32 versus consensus estimate of $2.05.
For the current fiscal year, Navios Maritime Partners is expected to post earnings of $15.20 per share on $1.34 billion in revenues. This represents a 22.09% change in EPS on a 2.24% change in revenues. For the next fiscal year, the company is expected to earn $18.80 per share on $1.47 billion in revenues. This represents a year-over-year change of 23.68% and 10.29%, respectively.
Valuation Metrics
Navios Maritime Partners may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Navios Maritime Partners has a Value Score of A. The stock's Growth and Momentum Scores are D and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 3.5X current fiscal year EPS estimates, which is not in-line with the peer industry average of 8.3X. On a trailing cash flow basis, the stock currently trades at 2.4X versus its peer group's average of 4.1X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Navios Maritime Partners currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Navios Maritime Partners meets the list of requirements. Thus, it seems as though Navios Maritime Partners shares could still be poised for more gains ahead.
How Does NMM Stack Up to the Competition?
Shares of NMM have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Costamare Inc. (CMRE - Free Report) . CMRE has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of C.
Earnings were strong last quarter. Costamare Inc. beat our consensus estimate by 5%, and for the current fiscal year, CMRE is expected to post earnings of $3.08 per share on revenue of $1.6 billion.
Shares of Costamare Inc. have gained 23% over the past month, and currently trade at a forward P/E of 5.24X and a P/CF of 3.95X.
The Transportation - Shipping industry may rank in the bottom 63% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for NMM and CMRE, even beyond their own solid fundamental situation.