Advertisement
Singapore markets open in 17 minutes
  • Straits Times Index

    3,300.04
    -3.15 (-0.10%)
     
  • S&P 500

    5,187.70
    +6.96 (+0.13%)
     
  • Dow

    38,884.26
    +31.99 (+0.08%)
     
  • Nasdaq

    16,332.56
    -16.69 (-0.10%)
     
  • Bitcoin USD

    62,588.30
    -880.31 (-1.39%)
     
  • CMC Crypto 200

    1,295.32
    -69.80 (-5.11%)
     
  • FTSE 100

    8,313.67
    +100.18 (+1.22%)
     
  • Gold

    2,322.80
    -1.40 (-0.06%)
     
  • Crude Oil

    78.24
    -0.14 (-0.18%)
     
  • 10-Yr Bond

    4.4630
    -0.0260 (-0.58%)
     
  • Nikkei

    38,520.11
    -314.99 (-0.81%)
     
  • Hang Seng

    18,479.37
    -98.93 (-0.53%)
     
  • FTSE Bursa Malaysia

    1,605.68
    +8.29 (+0.52%)
     
  • Jakarta Composite Index

    7,123.61
    -7,135.89 (-50.04%)
     
  • PSE Index

    6,618.58
    -33.91 (-0.51%)
     

Are Investors Undervaluing These Transportation Stocks Right Now?

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.

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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is GasLog Partners (GLOP). GLOP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 2.94, which compares to its industry's average of 3.99. Over the last 12 months, GLOP's Forward P/E has been as high as 6.14 and as low as 2.47, with a median of 3.44.

ADVERTISEMENT

We should also highlight that GLOP has a P/B ratio of 0.32. 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 company's current P/B looks solid when compared to its industry's average P/B of 0.95. Within the past 52 weeks, GLOP's P/B has been as high as 0.44 and as low as 0.20, with a median of 0.29.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GLOP has a P/S ratio of 0.64. This compares to its industry's average P/S of 1.31.

Investors could also keep in mind Navios Maritime Partners (NMM), an Transportation - Shipping stock with a Zacks Rank of # 1 (Strong Buy) and Value grade of A.

Navios Maritime Partners also has a P/B ratio of 0.32 compared to its industry's price-to-book ratio of 0.95. Over the past year, its P/B ratio has been as high as 0.69, as low as 0.14, with a median of 0.37.

These are just a handful of the figures considered in GasLog Partners and Navios Maritime Partners's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GLOP and NMM is an impressive value stock right now.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
GasLog Partners LP (GLOP) : Free Stock Analysis Report
 
Navios Maritime Partners LP (NMM) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research