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Is CrossAmerica Partners (CAPL) Stock Undervalued Right Now?

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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

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

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CAPL has a P/S ratio of 0.16. This compares to its industry's average P/S of 0.37.

Finally, investors should note that CAPL has a P/CF ratio of 5.26. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CAPL's current P/CF looks attractive when compared to its industry's average P/CF of 6.56. Over the past year, CAPL's P/CF has been as high as 6.48 and as low as 4.82, with a median of 5.36.

Investors could also keep in mind Global Partners (GLP - Free Report) , an Oil and Gas - Refining and Marketing - Master Limited Partnerships stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Global Partners sports a P/B ratio of 1.72 as well; this compares to its industry's price-to-book ratio of 3.48. In the past 52 weeks, GLP's P/B has been as high as 2.01, as low as 1.37, with a median of 1.69.

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


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