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Should Value Investors Buy These Transportation Stocks?

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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.

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.

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.

Navios Maritime Partners (NMM) is a stock many investors are watching right now. NMM is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 1.67. This compares to its industry's average Forward P/E of 4.35. Over the past year, NMM's Forward P/E has been as high as 5.06 and as low as 1.28, with a median of 2.56.

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. NMM has a P/S ratio of 0.96. This compares to its industry's average P/S of 1.38.

Finally, we should also recognize that NMM has a P/CF ratio of 1.61. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.36. Within the past 12 months, NMM's P/CF has been as high as 352.53 and as low as 1.41, with a median of 2.19.

Investors could also keep in mind Seanergy Maritime Holdings (SHIP), an Transportation - Shipping stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Additionally, Seanergy Maritime Holdings has a P/B ratio of 0.63 while its industry's price-to-book ratio sits at 1.05. For SHIP, this valuation metric has been as high as 1.57, as low as 0.35, with a median of 0.82 over the past year.

These are only a few of the key metrics included in Navios Maritime Partners and Seanergy Maritime Holdings strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, NMM and SHIP look like an impressive value stock at the moment.


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Navios Maritime Partners LP (NMM) : Free Stock Analysis Report
 
Seanergy Maritime Holdings Corp (SHIP) : Free Stock Analysis Report
 
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