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Why it is Worth Betting on CrossAmerica Partners (CAPL) Now

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CrossAmerica Partners LP’s (CAPL - Free Report) strategic moves along with upbeat growth estimates and strong fundamentals 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.

Upward Estimate Revision

The Zacks Consensus Estimate for 2020 earnings per unit has moved north to $2.88, indicating an 18.5% improvement in the past 60 days.

The Zacks Consensus Estimate for 2021 earnings is pegged at 86 cents per unit, suggesting a 3.6% rise in the past 60 days.

Surprise History

CrossAmerica Partners has a trailing four-quarter earnings surprise is 67.35%, on average.

Acquisition and Divestiture

The firm continues to streamline its operations through strategic acquisitions and divestitures. On Apr 14, it closed the buyout (announced on Jan 15, 2020) of retail/wholesale assets. The deal includes retail operations at 169 sites (154 company-operated and 15 commission sites). Also, the completion of asset exchange with Couche-Tard/Circle K benefited its third-quarter performance. In the first nine months, the firm’s capital expenditure amounted to $24.4 million, up from $18.4 million year over year.

Moreover, in the third quarter, CrossAmerica Partners divested seven properties for $3.8 million. Such actions will allow it to focus on its core businesses and enhance its existing operations.

Cash Flow

Growth in cash flow plays a crucial role for companies in expanding businesses and reducing the dependency on procuring funds from external sources. Remarkably, CrossAmerica Partners’ annualized cash flow growth rate has been 19.7% over the past three-five years, outperforming the industry average of 13.6%. Also, the firm’s net cash provided by operating activities in the first nine months summed $86.5 million, up from $69.5 million year over year.

Return on Equity (ROE)

The firm’s ROE for the trailing 12 months is 19.19%, comparing favorably with its sector’s 2.12%. This uptrend reflects its higher efficiency in utilizing its unitholders’ funds than its peers in the Oil and Energy sector.

Price Performance

The stock has rallied 19.7%, outperforming the industry’s rise of 3.1% in the past six months.

Favorable 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 Hess Midstream Partners LP (HESM - Free Report) , DCP Midstream Partners, LP and Global Partners LP (GLP - Free Report) . While Hess Midstream Partners and DCP Midstream Partners are flaunting a Zacks Rank #1, Global Partners is carrying the same Zacks Rank as CrossAmerica Partners, presently.

The Zacks Consensus Estimate for 2021 earnings of Hess Midstream Partners, DCP Midstream Partners and Global Partners earnings has been revised 71.2%, 33.1% and 39.3% upward, respectively, in the past 60 days.

Further, Hess Midstream Partners, DCP Midstream Partners and Global Partners delivered a trailing four-quarter earnings surprise of 73.04%, 13.57% and 214.64% each, on average.

Zacks Names “Single Best Pick to Double”

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.

Free: See Our Top Stock and 4 Runners Up >>


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Global Partners LP (GLP) - free report >>

CrossAmerica Partners LP (CAPL) - free report >>

Hess Midstream Partners LP (HESM) - free report >>

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