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Is Capital Product Partners L.P. (CPLP) Stock Undervalued Right Now?

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·2 min read
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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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Capital Product Partners L.P. (CPLP) is a stock many investors are watching right now. CPLP is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 4.78, which compares to its industry's average of 6.99. Over the past 52 weeks, CPLP's Forward P/E has been as high as 18.29 and as low as 2.71, with a median of 5.79.

Another notable valuation metric for CPLP is its P/B ratio of 0.31. 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. CPLP's current P/B looks attractive when compared to its industry's average P/B of 0.44. CPLP's P/B has been as high as 0.64 and as low as 0.24, with a median of 0.40, over the past year.

These are only a few of the key metrics included in Capital Product Partners L.P.'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, CPLP looks like an impressive value stock at the moment.


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