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Are Investors Undervaluing Global Partners LP (GLP) Right Now?

Zacks Equity Research
Crown Castle (CCI) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 #2 (Buy), as well as an A grade for Value.

We should also highlight that GLP has a P/B ratio of 1.62. The P/B ratio pits a stock's market value against 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 1.64. Within the past 52 weeks, GLP's P/B has been as high as 1.65 and as low as 1.19, with a median of 1.44.

Finally, our model also underscores that GLP has a P/CF ratio of 3.32. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 7.97. GLP's P/CF has been as high as 7 and as low as 2.50, with a median of 3.06, all within the past year.

These are only a few of the key metrics included in Global Partners LP'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, GLP looks like an impressive value stock at the moment.


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