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CrossAmerica Partners (CAPL) Gains As Market Dips: What You Should Know

Zacks Equity Research

CrossAmerica Partners (CAPL) closed at $18.40 in the latest trading session, marking a +0.55% move from the prior day. This move outpaced the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq gained 0.21%.

Prior to today's trading, shares of the wholesale fuels distributor had gained 0.88% over the past month. This has outpaced the Oils-Energy sector's gain of 0.47% and lagged the S&P 500's gain of 4.65% in that time.

Investors will be hoping for strength from CAPL as it approaches its next earnings release, which is expected to be May 6, 2019. In that report, analysts expect CAPL to post earnings of $0.13 per share. This would mark year-over-year growth of 316.67%. Meanwhile, our latest consensus estimate is calling for revenue of $636.10 million, up 14.7% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.72 per share and revenue of $2.53 billion, which would represent changes of +554.55% and +3.46%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for CAPL. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. CAPL currently has a Zacks Rank of #1 (Strong Buy).

Digging into valuation, CAPL currently has a Forward P/E ratio of 25.53. Its industry sports an average Forward P/E of 15.36, so we one might conclude that CAPL is trading at a premium comparatively.

It is also worth noting that CAPL currently has a PEG ratio of 6.23. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry currently had an average PEG ratio of 2.8 as of yesterday's close.

The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is part of the Oils-Energy sector. This group has a Zacks Industry Rank of 234, putting it in the bottom 9% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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Zacks Investment Research