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Are Investors Undervaluing Global Partners (GLP) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Global Partners (GLP - Free Report) . GLP is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.

Another notable valuation metric for GLP is its P/B ratio of 2.73. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. GLP's current P/B looks attractive when compared to its industry's average P/B of 5.61. Over the past year, GLP's P/B has been as high as 3.16 and as low as 2.33, with a median of 2.82.

Finally, our model also underscores that GLP has a P/CF ratio of 6.78. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.38. Within the past 12 months, GLP's P/CF has been as high as 8.49 and as low as 5.71, with a median of 6.90.

These are just a handful of the figures considered in Global 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 is an impressive value stock right now.

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