Navigator Holdings (NVGS) is a Zacks Rank #1 (Strong Bu) that has a C for Value and B for Growth.  This is shipping company that is focused in the transportation of oil and gas. I am sure that you have seen the escalation of tensions and violence in the Red Sea and that geopolitical news is going to cause shipping rates to move a lot higher.  Even ships that are not in the Red Sea will see prices increase as the potential for attacks outside of the region has grown.  Let’s explore more about this company in this Bull of The Day article.

Description

Navigator Holdings Ltd. owns and operates a fleet of handy-size liquefied gas carriers. It also provides international seaborne transportation and regional distribution services of liquefied petroleum gas, petrochemical gases, and ammonia for energy companies, industrial users, and commodity traders. The company was founded in 1997 and is headquartered in London, the United Kingdom.

Earnings History

When I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.

For Navigator Holdings, I see one beat of the Zacks Consensus Estimate and one meet and two misses over the last year.  The average positive earnings surprise over the last year works out to be a positive 0.14%.

The beat was 3 quarters ago and was good for 41% and that was enough to give this stock a positive average surprise for the year.

Earnings Estimates Revisions

Earnings estimates revisions is what the Zacks Rank is all about. 

This quarter bumped up a penny in the last 60 days and that took the full year number up a penny as well.

Next quarter has seen a move lower to 30 cents from 34 cents.

The full year 2024 is at $1.46 and that is up a penny over the last 60 days.  

If shipping rates continue to rise, these numbers should trend higher as well.

Valuation

I see a forward multiple of 10.6x and that is very low for a company that posted topline 29% in the most recent quarter. The price book is at 0.95x which means that we are buying this stock for less than the value of the assets on the books.  Value players love a stock that is below 1x on price to book and with good growth and earnings growth this makes this a great play here.  Margins increased from 10.8% in June to 13.4% in September.

More By This Author:

Bear Of The Day: Marathon Oil
3 Wireless Stocks Set To Sail Against The Ailing Industry
Time To Buy The Dip In These High-Growth Stocks