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Is CrossAmerica Partners (CAPL) a Great Value Stock Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

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

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CAPL has a P/S ratio of 0.21. This compares to its industry's average P/S of 0.26.

Finally, our model also underscores that CAPL has a P/CF ratio of 7.44. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CAPL's P/CF compares to its industry's average P/CF of 8.66. Within the past 12 months, CAPL's P/CF has been as high as 9.37 and as low as 6.28, with a median of 7.46.

Sunoco (SUN - Free Report) may be another strong Oil and Gas - Refining and Marketing - Master Limited Partnerships stock to add to your shortlist. SUN is a # 1 (Strong Buy) stock with a Value grade of A.

Sunoco sports a P/B ratio of 4.42 as well; this compares to its industry's price-to-book ratio of 3.32. In the past 52 weeks, SUN's P/B has been as high as 5.76, as low as 4.13, with a median of 4.88.

These figures are just a handful of the metrics value investors tend to look at, but they help show that CrossAmerica Partners and Sunoco are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CAPL and SUN feels like a great value stock at the moment.


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