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Are Investors Undervaluing Green Plains Partners (GPP) 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.

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 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 to watch right now is Green Plains Partners (GPP). GPP is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 7.26. This compares to its industry's average Forward P/E of 17.67. Over the past year, GPP's Forward P/E has been as high as 14.45 and as low as 6.93, with a median of 8.91.

Finally, investors should note that GPP has a P/CF ratio of 5.72. 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. GPP's P/CF compares to its industry's average P/CF of 17.36. Within the past 12 months, GPP's P/CF has been as high as 7.40 and as low as 5.19, with a median of 5.89.

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


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