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Are Investors Undervaluing Global Partners (GLP) 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.
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 stock to keep an eye on is Global Partners (GLP - Free Report) . GLP is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 11.37, which compares to its industry's average of 12.77. Over the past 52 weeks, GLP's Forward P/E has been as high as 13.92 and as low as 7.80, with a median of 9.19.
Investors should also recognize that GLP has a P/B ratio of 2.34. Investors use the P/B ratio to look at a stock's market value versus 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 4.30. Over the past 12 months, GLP's P/B has been as high as 2.46 and as low as 1.51, with a median of 1.70.
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. GLP has a P/S ratio of 0.1. This compares to its industry's average P/S of 0.27.
Finally, investors should note that GLP has a P/CF ratio of 6.03. 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. GLP's P/CF compares to its industry's average P/CF of 8.16. Over the past 52 weeks, GLP's P/CF has been as high as 6.35 and as low as 2.11, with a median of 3.28.
Another great Oil and Gas - Refining and Marketing - Master Limited Partnerships stock you could consider is NGL Energy Partners (NGL - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Additionally, NGL Energy Partners has a P/B ratio of 1.53 while its industry's price-to-book ratio sits at 4.30. For NGL, this valuation metric has been as high as 1.58, as low as 0.72, with a median of 1.17 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Global Partners and NGL Energy Partners are likely undervalued currently. And when considering the strength of its earnings outlook, GLP and NGL sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Global Partners (GLP) Right Now?
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.
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 stock to keep an eye on is Global Partners (GLP - Free Report) . GLP is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 11.37, which compares to its industry's average of 12.77. Over the past 52 weeks, GLP's Forward P/E has been as high as 13.92 and as low as 7.80, with a median of 9.19.
Investors should also recognize that GLP has a P/B ratio of 2.34. Investors use the P/B ratio to look at a stock's market value versus 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 4.30. Over the past 12 months, GLP's P/B has been as high as 2.46 and as low as 1.51, with a median of 1.70.
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. GLP has a P/S ratio of 0.1. This compares to its industry's average P/S of 0.27.
Finally, investors should note that GLP has a P/CF ratio of 6.03. 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. GLP's P/CF compares to its industry's average P/CF of 8.16. Over the past 52 weeks, GLP's P/CF has been as high as 6.35 and as low as 2.11, with a median of 3.28.
Another great Oil and Gas - Refining and Marketing - Master Limited Partnerships stock you could consider is NGL Energy Partners (NGL - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Additionally, NGL Energy Partners has a P/B ratio of 1.53 while its industry's price-to-book ratio sits at 4.30. For NGL, this valuation metric has been as high as 1.58, as low as 0.72, with a median of 1.17 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Global Partners and NGL Energy Partners are likely undervalued currently. And when considering the strength of its earnings outlook, GLP and NGL sticks out as one of the market's strongest value stocks.