Back to top

Image: Bigstock

Should Value Investors Buy Global Partners LP (GLP) Stock?

Read MoreHide Full Article

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.

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Global Partners LP (GLP - Free Report) . GLP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

Investors should also recognize that GLP has a P/B ratio of 1.59. 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 stock's P/B looks attractive against its industry's average P/B of 2. GLP's P/B has been as high as 1.77 and as low as 1.17, with a median of 1.55, over the past year.

Finally, we should also recognize that GLP has a P/CF ratio of 3.86. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9.48. Over the past 52 weeks, GLP's P/CF has been as high as 4.41 and as low as 2.57, with a median of 3.71.

These are just a handful of the figures considered in Global Partners LP'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 GLP is an impressive value stock right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Global Partners LP (GLP) - free report >>

Published in