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Is Capital Product Partners L.P. (CPLP) a Great Value Stock Right Now?

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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.

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.

Capital Product Partners L.P. (CPLP - Free Report) is a stock many investors are watching right now. CPLP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 5.93 right now. For comparison, its industry sports an average P/E of 13.84. Over the past year, CPLP's Forward P/E has been as high as 15.49 and as low as 5.81, with a median of 7.19.

Another notable valuation metric for CPLP is its P/B ratio of 0.48. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. CPLP's current P/B looks attractive when compared to its industry's average P/B of 0.73. Over the past 12 months, CPLP's P/B has been as high as 0.53 and as low as 0.25, with a median of 0.45.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CPLP has a P/S ratio of 0.95. This compares to its industry's average P/S of 1.03.

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


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