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Is Global Partners LP (GLP) Stock Undervalued Right Now?

·2 min read

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.

One company value investors might notice is Global Partners LP (GLP). GLP is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.

Another notable valuation metric for GLP is its P/B ratio of 1.93. 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 2.17. GLP's P/B has been as high as 1.93 and as low as 0.71, with a median of 1.14, over the past year.

Finally, investors should note that GLP has a P/CF ratio of 4.04. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. GLP's current P/CF looks attractive when compared to its industry's average P/CF of 10.75. GLP's P/CF has been as high as 4.04 and as low as 1.54, with a median of 2.66, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Global Partners LP is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GLP feels like a great value stock at the moment.


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