Should Value Investors Buy GasLog Partners (GLOP) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 GasLog Partners (GLOP). GLOP is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 4.44. This compares to its industry's average Forward P/E of 5.07. GLOP's Forward P/E has been as high as 5.71 and as low as 2.89, with a median of 4.20, all within the past year.
We should also highlight that GLOP has a P/B ratio of 0.65. 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 1.03. Within the past 52 weeks, GLOP's P/B has been as high as 0.73 and as low as 0.41, with a median of 0.63.
Finally, we should also recognize that GLOP has a P/CF ratio of 2.20. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. GLOP's P/CF compares to its industry's average P/CF of 2.92. GLOP's P/CF has been as high as 4.91 and as low as 1.65, with a median of 3.47, all within the past year.
Another great Transportation - Shipping stock you could consider is Global Ship Lease (GSL), which is a # 2 (Buy) stock with a Value Score of A.
Additionally, Global Ship Lease has a P/B ratio of 0.68 while its industry's price-to-book ratio sits at 1.03. For GSL, this valuation metric has been as high as 0.92, as low as 0.60, with a median of 0.69 over the past year.
These figures are just a handful of the metrics value investors tend to look at, but they help show that GasLog Partners and Global Ship Lease are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GLOP and GSL feels like a great value stock at the moment.
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GasLog Partners LP (GLOP) : Free Stock Analysis Report
Global Ship Lease, Inc. (GSL) : Free Stock Analysis Report
