Back to top

Image: Bigstock

Should Value Investors Buy Global Partners (GLP) Stock?

Read MoreHide Full Article

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.

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.

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 stock to keep an eye on is Global Partners (GLP - Free Report) . GLP is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A.

We should also highlight that GLP has a P/B ratio of 2.73. 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 attractive against its industry's average P/B of 5.73. GLP's P/B has been as high as 3.16 and as low as 2.33, with a median of 2.82, over the past year.

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. GLP's current P/CF looks attractive when compared to its industry's average P/CF of 11.61. GLP's P/CF has been as high as 8.49 and as low as 5.71, with a median of 6.90, all within the past year.

These are only a few of the key metrics included in Global Partners's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, GLP looks like an impressive value stock at the moment.

Published in