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Why You Should Add CrossAmerica Partners to Your Portfolio Now

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CrossAmerica Partners LP’s (CAPL - Free Report) planned capital expenditures along with upbeat growth estimates make it a solid investment option.

Let’s analyze the factors that make this currently Zacks Rank #2 (Buy) stock an ideal investment bet. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Estimate Revision

The Zacks Consensus Estimate for 2020 earnings per unit has moved north to $2.43, indicating a 19.7% improvement in the past 60 days.

The Zacks Consensus Estimate for 2021 earnings is pegged at 83 cents per unit, suggesting a skyrocketing 137.1% rise in the past 60 days.

Surprise History

CrossAmerica Partners’ trailing four-quarter earnings surprise is 42.04%, on average.

Strategic Moves

On Apr 14, the firm completed the acquisition (announced on Jan 15, 2020) of retail/wholesale assets. The deal includes retail operations at 169 sites (154 company-operated sites and 15 commission sites). Also, its asset exchange with Couche-Tard/Circle Kis on track with the final exchange of assets expected to be settled in the second half of 2020. In the six months ended June, the firm’s capital expenditure amounted to $10.76 million, up from $10.71 million year over year.

Moreover, in the second quarter, CrossAmerica Partners divested seven properties for $4.4 million. Such actions will allow it to focus on its core businesses and enhance its existing operations.

Return on Equity (ROE)

The firm’s ROE for the trailing 12 months is 16.68%, comparing favorably with the S&P 500 Index’s 16.61%. This uptrend reflects its higher efficiency in utilizing its shareholders’ funds than S&P 500 Group.

Stock Movement

The share price has rallied 17.5% against the industry’s decline of 12.7% in the quarter-to-date period.

VGM Score

CrossAmerica 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 of 1 or 2 offer the best upside potential.

Other Stocks to Consider

A few other top-ranked stocks in the same sector are Suburban Propane Partners, L.P. (SPH - Free Report) , Global Partners LP (GLP - Free Report) and TC PipeLines, LP . While Suburban Propane Partners is flaunting a Zacks Rank #1, other stocks are carrying the same Zacks Rank as CrossAmerica Partners, presently.

The Zacks Consensus Estimate for Global Partners’ 2020 earnings has moved north to $2.29 in the past 60 days against the previous loss estimate of 20 cents. Also, the current-year estimates for TC PipeLines and Suburban Propane Partners have been revised 4.2% and 66.7% upward, respectively, in the past 60 days.

Further, Global Partners, TC PipeLines and Suburban Propane Partners delivered a trailing four-quarter earnings surprise of 174.56%, 19.34% and 4.88% each, on average.

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Suburban Propane Partners, L.P. (SPH) - free report >>

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CrossAmerica Partners LP (CAPL) - free report >>

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