Should Value Investors Buy Global Partners (GLP) Stock?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.

Global Partners (GLP) is a stock many investors are watching right now. GLP is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 14.79, while its industry has an average P/E of 15.70. Over the last 12 months, GLP's Forward P/E has been as high as 23.86 and as low as 12.17, with a median of 18.63.

Another valuation metric that we should highlight is GLP's P/B ratio of 2.73. The P/B ratio pits a stock's market value against 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 5.83. Within the past 52 weeks, GLP's P/B has been as high as 3.16 and as low as 2.33, with a median of 2.82.

Finally, our model also underscores that GLP has a P/CF ratio of 6.78. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.48. Over the past 52 weeks, GLP's P/CF has been as high as 8.49 and as low as 5.71, with a median of 6.90.

These are just a handful of the figures considered in Global Partners's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that GLP is an impressive value stock right now.

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This article originally published on Zacks Investment Research (zacks.com).

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