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Is USD Partners LP (USDP) Stock Undervalued 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

USD Partners LP (USDP - Free Report) is a stock many investors are watching right now. USDP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 11.47. This compares to its industry's average Forward P/E of 16.95. Over the last 12 months, USDP's Forward P/E has been as high as 11.89 and as low as 8.39, with a median of 10.60.

Another notable valuation metric for USDP is its P/B ratio of 3.55. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 4.84. Over the past 12 months, USDP's P/B has been as high as 4.26 and as low as 3.19, with a median of 3.61.

Finally, our model also underscores that USDP has a P/CF ratio of 5.06. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. USDP's current P/CF looks attractive when compared to its industry's average P/CF of 9.22. Within the past 12 months, USDP's P/CF has been as high as 7.01 and as low as 4.02, with a median of 4.90.

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


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