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Are Investors Undervaluing Golar LNG Partners LP (GMLP) 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, 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.

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.

One company to watch right now is Golar LNG Partners LP (GMLP - Free Report) . GMLP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 7.60 right now. For comparison, its industry sports an average P/E of 22.60. Over the past year, GMLP's Forward P/E has been as high as 17.22 and as low as 6.83, with a median of 10.62.

We should also highlight that GMLP has a P/B ratio of 1.16. 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 2.21. Over the past year, GMLP's P/B has been as high as 1.61 and as low as 1.09, with a median of 1.29.

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


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