While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company to watch right now is Global Partners (GLP). GLP is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 14.79, which compares to its industry's average of 15.19. GLP's Forward P/E has been as high as 23.86 and as low as 12.17, with a median of 18.63, all within the past year.
Investors should also recognize that GLP has a 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 company's current P/B looks solid when compared to its industry's average P/B of 5.66. 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, investors should note that GLP has a P/CF ratio of 6.78. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.15. Over the past year, GLP's P/CF has been as high as 8.49 and as low as 5.71, with a median of 6.90.
Value investors will likely look at more than just these metrics, but the above data helps show that Global Partners is likely undervalued currently. And when considering the strength of its earnings outlook, GLP sticks out as one of the market's strongest value stocks.
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Global Partners LP (GLP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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