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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 #2 (Buy) and an A for Value.
Another valuation metric that we should highlight is GLP's P/B ratio of 2.73. 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. This stock's P/B looks attractive against its industry's average P/B of 6.40. Over the past 12 months, 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 figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. GLP's current P/CF looks attractive when compared to its industry's average P/CF of 10.91. GLP's P/CF has been as high as 8.49 and as low as 5.71, with a median of 6.90, all within the past year.
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).