Global Partners LP’s (GLP - Free Report) strong fundamentals and healthy liquidity along with growth expectations make it a good investment choice.
Let’s focus on the factors that make this currently Zacks Rank #1 (Strong Buy) stock a strong investment pick. You can see the complete list of today’s Zacks #1 Rank stocks here.
Upward Estimate Revision
The Zacks Consensus Estimate for 2020 earnings per unit has moved north to $2.29 in the past 60 days against the previous loss estimate of 20 cents.
The Zacks Consensus Estimate for 2021 earnings is pegged at 61 cents per unit, which has improved 238.9% in the past 60 days.
Excellent Surprise History
Global Partners’ trailing four-quarter earnings surprise is 174.56%, on average.
The firm’s times interest earned (TIE) ratio also improved to 2.06 at the end of the second quarter from 1.30 at the end of the first quarter. Such a strong TIE ratio reflects the partnership’s ability to meet its debt obligations in the near future.
Taking into consideration the ongoing pandemic and the current economic situation, Global Partners undertook steps to enhance its liquidity. Some include reduction of quarterly distribution by 25% for the first quarter of 2020, and decreasing planned expenses and 2020 capital spending.
Solid Price Performance
The stock has gained 28.1% against the industry’s decline of 12.6% in the quarter-to-date period.
Strong Return on Equity (ROE)
The firm’s ROE for the trailing 12 months is 26.44%, comparing favorably with the industry’s 18.65%. This uptrend reflects its higher efficiency in utilizing its shareholders’ funds than its peers.
Favorable VGM score
Global Partners currently has a VGM Score of A. Our research shows that stocks with a Style Score of A or B when combined with a Zacks Rank #1 or 2 (Buy) offer the best upside potential.
Other Stocks to Consider
A few other top-ranked utilities are Suburban Propane Partners, L.P. (SPH - Free Report) , TC PipeLines, LP (TCP - Free Report) and CrossAmerica Partners LP (CAPL - Free Report) . While Suburban Propane Partners is flaunting a Zacks Rank of 1, other stocks are carrying a Zacks Rank#2, presently.
The Zacks Consensus Estimate for 2020 earnings of Suburban Propane, TC PipeLines and CrossAmerica Partners has moved 66.7%, 4.2% and 19.7% north, respectively, in the past 60 days.
Also, Suburban Propane, TC PipeLines and CrossAmerica Partners delivered an earnings surprise of 4.88%, 19.34% and 42.04% each, on average, in the last four quarters.
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