Is CrossAmerica Partners (CAPL) Stock Undervalued Right Now?

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 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.

One company value investors might notice is CrossAmerica Partners (CAPL). CAPL is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value.

Finally, investors should note that CAPL has a P/CF ratio of 6.23. 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. CAPL's current P/CF looks attractive when compared to its industry's average P/CF of 10.41. Over the past 52 weeks, CAPL's P/CF has been as high as 9.50 and as low as 5.81, with a median of 7.89.

If you're looking for another solid Oil and Gas - Refining and Marketing - Master Limited Partnerships value stock, take a look at Global Partners (GLP). GLP is a Zacks Rank of #1 (Strong Buy) stock with a Value score of A.

Furthermore, Global Partners holds a P/B ratio of 2.73 and its industry's price-to-book ratio is 6.30. GLP's P/B has been as high as 3.16, as low as 2.33, with a median of 2.82 over the past 12 months.

Value investors will likely look at more than just these metrics, but the above data helps show that CrossAmerica Partners and Global Partners are likely undervalued currently. And when considering the strength of its earnings outlook, CAPL and GLP sticks out as one of the market's strongest value stocks.

Zacks' Research Chief Names "Stock Most Likely to Double"

Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.

This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research