Should Value Investors Buy Global Partners (GLP) Stock?
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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Global Partners (GLP) is a stock many investors are watching right now. GLP is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 8.83. This compares to its industry's average Forward P/E of 9.46. GLP's Forward P/E has been as high as 12.03 and as low as 3.25, with a median of 8.98, all within the past year.
We should also highlight that GLP has a P/B ratio of 1.65. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. GLP's current P/B looks attractive when compared to its industry's average P/B of 3.19. Over the past 12 months, GLP's P/B has been as high as 2.09 and as low as 1.37, with a median of 1.73.
Finally, we should also recognize that GLP has a P/CF ratio of 2.22. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. GLP's current P/CF looks attractive when compared to its industry's average P/CF of 5.70. GLP's P/CF has been as high as 4.11 and as low as 1.97, with a median of 2.45, all within the past year.
Investors could also keep in mind NGL Energy Partners (NGL), an Oil and Gas - Refining and Marketing - Master Limited Partnerships stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Additionally, NGL Energy Partners has a P/B ratio of 1.27 while its industry's price-to-book ratio sits at 3.19. For NGL, this valuation metric has been as high as 1.31, as low as 0.33, with a median of 0.51 over 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 and NGL Energy Partners are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GLP and NGL feels like a great value stock at the moment.
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Global Partners LP (GLP) : Free Stock Analysis Report
NGL Energy Partners LP (NGL) : Free Stock Analysis Report
