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Should Value Investors Buy Global Partners (GLP) Stock?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

One company to watch right now is Global Partners (GLP - Free Report) . GLP is currently sporting a Zacks Rank #1 (Strong Buy), as well as an A grade for Value.

Another notable valuation metric for GLP is its P/B ratio of 2.78. 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 solid versus its industry's average P/B of 5.68. GLP's P/B has been as high as 3.16 and as low as 2.00, with a median of 2.77, over the past year.

Finally, our model also underscores that GLP has a P/CF ratio of 6.46. 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. This stock's P/CF looks attractive against its industry's average P/CF of 8.94. Over the past 52 weeks, GLP's P/CF has been as high as 7.98 and as low as 5.04, with a median of 6.30.

Value investors will likely look at more than just these metrics, but the above data helps show that Global Partners is likely undervalued currently. And when considering the strength of its earnings outlook, GLP sticks out as one of the market's strongest value stocks.


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