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Should Value Investors Buy Global Partners (GLP) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is Global Partners (GLP - Free Report) . GLP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 7.70, while its industry has an average P/E of 9.64. Over the past year, GLP's Forward P/E has been as high as 21.96 and as low as 6.05, with a median of 13.42.

Another notable valuation metric for GLP is its P/B ratio of 1.85. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 3.04. Over the past year, GLP's P/B has been as high as 2.60 and as low as 1.47, with a median of 2.03.

Finally, investors should note that GLP has a P/CF ratio of 2.80. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. GLP's P/CF compares to its industry's average P/CF of 6.60. Within the past 12 months, GLP's P/CF has been as high as 5.99 and as low as 2.23, with a median of 4.77.

Another great Oil and Gas - Refining and Marketing - Master Limited Partnerships stock you could consider is Sunoco (SUN - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Additionally, Sunoco has a P/B ratio of 4.24 while its industry's price-to-book ratio sits at 3.04. For SUN, this valuation metric has been as high as 5.76, as low as 3.69, with a median of 4.47 over the past year.

These are only a few of the key metrics included in Global Partners and Sunoco strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, GLP and SUN look like an impressive value stock at the moment.


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