Is CrossAmerica Partners (CAPL) Stock Undervalued Right Now?

SUN CAPL

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

CrossAmerica Partners (CAPL - Free Report) is a stock many investors are watching right now. CAPL is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CAPL has a P/S ratio of 0.15. This compares to its industry's average P/S of 0.37.

Finally, our model also underscores that CAPL has a P/CF ratio of 5.72. 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 6.80. Within the past 12 months, CAPL's P/CF has been as high as 8.51 and as low as 5.65, with a median of 7.23.

Another great Oil and Gas - Refining and Marketing - Master Limited Partnerships stock you could consider is Sunoco (SUN - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Furthermore, Sunoco holds a P/B ratio of 4.40 and its industry's price-to-book ratio is 3.11. SUN's P/B has been as high as 5.76, as low as 3.69, with a median of 4.44 over the past 12 months.

These are just a handful of the figures considered in CrossAmerica Partners and Sunoco'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 CAPL and SUN is an impressive value stock right now.

4 Oil Stocks with Massive Upsides

Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold." 

Zacks Investment Research has just released an urgent special report to help you bank on this trend. 

In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations. 

Download your free report now to see them.