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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Global Partners (GLP). GLP is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 14.79, while its industry has an average P/E of 15.21. Over the past year, GLP's Forward P/E has been as high as 23.86 and as low as 12.17, with a median of 18.63.
We should also highlight that GLP has a 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 6.24. Over the past year, GLP's P/B has been as high as 3.16 and as low as 2.33, with a median of 2.82.
Finally, investors will want to recognize that GLP has a P/CF ratio of 6.78. 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. GLP's P/CF compares to its industry's average P/CF of 11.40. 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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Global Partners LP (GLP): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).