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Are Investors Undervaluing Capital Product Partners L.P. (CPLP) Right Now?

Zacks Equity Research

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Capital Product Partners L.P. (CPLP). CPLP is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 6.09. This compares to its industry's average Forward P/E of 10.50. 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 6.61.

Another valuation metric that we should highlight is CPLP's P/B ratio of 0.59. 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. This company's current P/B looks solid when compared to its industry's average P/B of 0.86. Within the past 52 weeks, CPLP's P/B has been as high as 0.60 and as low as 0.25, with a median of 0.48.

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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