CrossAmerica Partners LP’s ( CAPL Quick Quote CAPL - Free Report) planned investments and disinvestments along with growth estimates make it a solid investment option. Also, its strong financial position acts as a tailwind. Let’s analyze the factors that make this currently Zacks Rank #2 (Buy) firm 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 2022 earnings per unit is pegged at 98 cents per unit, suggesting a hike of 5.41% in the past 60 days. While 2021 earnings were flat in the same time frame.
CrossAmerica Partners’ trailing four-quarter earnings surprise is 97.72%, on average.
On Apr 14, 2020, 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, it completed the asset exchange with Couche-Tard/Circle Kis in September 2020.
Strong Financial Position
The firm’s debt-to-capital is 2.34% compared with the industry’s 66.50%. Net cash provided by operating activities in 2020 was $104.5 million compared with $72.3 million in 2019. Also, its times interest earned (TIE) ratio improved to 7 at the end of the fourth quarter from 6.16 at the end of the third quarter of last year. Such a strong TIE ratio reflects the partnership’s ability to meet its debt obligations in the near future.
Return on Equity (ROE)
The firm’s ROE for the trailing 12 months is 21.86%, comparing favorably with the Zacks S&P 500 Composite’s 20.42%. This uptrend reflects its higher efficiency in utilizing unitholders’ funds than the Zacks S&P 500 composite.
The share price has jumped 103.3%, outperforming the
industry’s growth of 69.7% in the past year. Other Stocks to Consider
A few other top-ranked stocks in the same sector are
Eni SpA ( E Quick Quote E - Free Report) , Global Partners LP ( GLP Quick Quote GLP - Free Report) and Chevron Corporation ( CVX Quick Quote CVX - Free Report) , all flaunting a Zacks Rank#1, presently. The Zacks Consensus Estimate for Eni SpA’s 2021 earnings has moved 60.6% north to $1.75 in the past 60 days. The company’s long-term (three-five years) earnings growth rate is pegged at 19.5%. The Zacks Consensus Estimate for Global Partners’ 2021 earnings has moved 57% north to $1.24 in the past 60 days. It delivered a trailing four-quarter earnings surprise of 262.76%, on average. The Zacks Consensus Estimate for Chevron Corporation’s 2021 earnings has moved 54.3% north to $5.20 in the past 60 days. The company’s long-term earnings growth rate stands at 5%. Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale. Download FREE: How to Profit from Trillions on Spending for Infrastructure >>