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Is CrossAmerica Partners (CAPL) Stock Undervalued Right Now?

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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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. 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.

CrossAmerica Partners (CAPL - Free Report) is a stock many investors are watching right now. CAPL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CAPL has a P/S ratio of 0.19. This compares to its industry's average P/S of 0.23.

Finally, our model also underscores that CAPL has a P/CF ratio of 6.66. 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 7. Over the past 52 weeks, CAPL's P/CF has been as high as 9.37 and as low as 6.28, with a median of 7.49.

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

Sunoco sports a P/B ratio of 3.96 as well; this compares to its industry's price-to-book ratio of 3. In the past 52 weeks, SUN's P/B has been as high as 5.76, as low as 3.78, with a median of 4.80.

These are just a handful of the figures considered in CrossAmerica Partners and Sunoco'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 CAPL and SUN is an impressive value stock right now.


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