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Are Investors Undervaluing Navios Maritime Partners (NMM) Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

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 Navios Maritime Partners (NMM - Free Report) . NMM is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 2.95, while its industry has an average P/E of 8.11. NMM's Forward P/E has been as high as 3.17 and as low as 1.51, with a median of 2.19, all within the past year.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. NMM has a P/S ratio of 1.15. This compares to its industry's average P/S of 1.4.

Investors could also keep in mind Safe Bulkers (SB - Free Report) , an Transportation - Shipping stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Furthermore, Safe Bulkers holds a P/B ratio of 0.76 and its industry's price-to-book ratio is 2.75. SB's P/B has been as high as 0.89, as low as 0.44, with a median of 0.57 over the past 12 months.

Value investors will likely look at more than just these metrics, but the above data helps show that Navios Maritime Partners and Safe Bulkers are likely undervalued currently. And when considering the strength of its earnings outlook, NMM and SB sticks out as one of the market's strongest value stocks.


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