Global Partners LP’s GLP strategic activities, strong fundamentals and healthy liquidity along with growth expectations make it a good investment choice.
Let’s focus on the factors that make this currently Zacks Rank #1 (Strong Buy) stock a strong investment pick. You can see the complete list of today’s Zacks #1 Rank stocks here.
Upward Estimate Revision
The Zacks Consensus Estimate for 2021 earnings per unit has moved 57% north to $1.24 in the past 60 days.
The Zacks Consensus Estimate for 2022 earnings is pegged at $1.50 per unit, which has improved 26.1% in the past 60 days.
Excellent Surprise History
Global Partners’ trailing four-quarter earnings surprise is 262.76%, on average.
In 2020, its capital expenditures amounted to $76.3 million. In December, the firm inked a deal to buy the retail fuel and convenience store assets of Consumers Petroleum of Connecticut, Incorporated. The acquisition is likely to be closed in the first half of 2021. Also, Global Partners added retail assets to fortify its presence in Greater Philadelphia.
Moreover, in March, it launched Project Carbon Freedom to decarbonize the residential heating sector and advance its transition to clean energy.
Its long-term lease liability (less current portion) declined to $226.6 million as of Dec 31, 2020 from $239.3 million onDec 31, 2019. The firm’s times interest earned (TIE) ratio also improved to 2.22 at the end of the fourth quarter of 2020 from 2.14 at the end of the third quarter. Such a strong TIE ratio reflects the partnership’s ability to meet its debt obligations in the near future.
In order to boost its liquidity, the firm had reduced its first-quarter distribution amount and trimmed its expenses and capital expenditure for 2020. However, better-than-expected second-quarter 2020 results allowed the firm to increase its quarterly distribution as well as capital spending. The firm has ample liquidity to meet its near-term debt obligations.
The stock has gained 20.8%, outperforming the industry’s rise of 18.4% in the past three months.
Strong Return on Equity (ROE)
The firm’s ROE for the trailing 12 months is 9.94%, comparing favorably with the industry’s 6.72%. This uptrend reflects its higher efficiency in utilizing its shareholders’ funds than its peers.
Other Stocks to Consider
A few other top-ranked stocks in the same sector are Eni SpA E, Chevron Corporation CVX and CrossAmerica Partners LP CAPL. While CrossAmerica Partners carries a Zacks Rank #2 (Buy), others flaunt a Zacks Rank of 1, presently.
The Zacks Consensus Estimate for Eni SpA’s 2021 earnings has moved 60.6% north to $1.75 in the past 60 days. The company’s long-term (three-five years) earnings growth rate is pegged at 19.5%.
The Zacks Consensus Estimate for Chevron Corporation’s 2021 earnings has moved 53.1% north to $5.16 in the past 60 days. The company’s long-term earnings growth rate stands at 5%.
The Zacks Consensus Estimate for CrossAmerica Partners’ 2021 earnings has been steady at 84 cents per unit in the past 60 days. Its trailing four-quarter earnings surprise is 97.72%, on average.
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Chevron Corporation (CVX) : Free Stock Analysis Report
Eni SpA (E) : Free Stock Analysis Report
Global Partners LP (GLP) : Free Stock Analysis Report
CrossAmerica Partners LP (CAPL) : Free Stock Analysis Report
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