Back to top

Should Value Investors Buy Global Partners LP (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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

Global Partners LP (GLP - Free Report) is a stock many investors are watching right now. GLP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 17.20. This compares to its industry's average Forward P/E of 19.06. Over the past 52 weeks, GLP's Forward P/E has been as high as 35.90 and as low as 12.23, with a median of 26.49.

Another valuation metric that we should highlight is GLP's P/B ratio of 1.44. 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 solid versus its industry's average P/B of 1.73. Within the past 52 weeks, GLP's P/B has been as high as 1.64 and as low as 1.19, with a median of 1.45.

Finally, investors should note that GLP has a P/CF ratio of 2.95. 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. This stock's P/CF looks attractive against its industry's average P/CF of 8.48. Over the past year, GLP's P/CF has been as high as 7.14 and as low as 2.50, with a median of 3.22.

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

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Global Partners LP (GLP) - free report >>

More from Zacks Tale of the Tape

You May Like