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Are Investors Undervaluing Global Partners (GLP) 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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Global Partners (GLP - Free Report) is a stock many investors are watching right now. GLP is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 8.83. This compares to its industry's average Forward P/E of 9.38. Over the last 12 months, GLP's Forward P/E has been as high as 12.03 and as low as 3.25, with a median of 8.97.

Investors should also recognize that GLP has a P/B ratio of 1.65. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.17. Over the past year, GLP's P/B has been as high as 2.60 and as low as 1.37, with a median of 1.74.

Finally, we should also recognize that GLP has a P/CF ratio of 2.22. 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 current P/CF looks attractive when compared to its industry's average P/CF of 5.70. Within the past 12 months, GLP's P/CF has been as high as 5.10 and as low as 1.97, with a median of 2.49.

NGL Energy Partners (NGL - Free Report) may be another strong Oil and Gas - Refining and Marketing - Master Limited Partnerships stock to add to your shortlist. NGL is a # 2 (Buy) stock with a Value grade of A.

Additionally, NGL Energy Partners has a P/B ratio of 1.10 while its industry's price-to-book ratio sits at 3.17. For NGL, this valuation metric has been as high as 1.12, as low as 0.33, with a median of 0.51 over the past year.

These are just a handful of the figures considered in Global Partners and NGL Energy Partners's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GLP and NGL is an impressive value stock right now.


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