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Are Investors Undervaluing CrossAmerica Partners (CAPL) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is CrossAmerica Partners (CAPL - Free Report) . 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 0.17. This compares to its industry's average P/S of 0.25.

Finally, we should also recognize that CAPL has a P/CF ratio of 6.23. 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. CAPL's current P/CF looks attractive when compared to its industry's average P/CF of 6.47. Within the past 12 months, CAPL's P/CF has been as high as 9.37 and as low as 6.07, 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 Global Partners (GLP - Free Report) . GLP is a # 1 (Strong Buy) stock with a Value score of A.

Furthermore, Global Partners holds a P/B ratio of 1.89 and its industry's price-to-book ratio is 3.21. GLP's P/B has been as high as 2.60, as low as 1.48, with a median of 2.03 over the past 12 months.

These figures are just a handful of the metrics value investors tend to look at, but they help show that CrossAmerica Partners and Global Partners are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CAPL and GLP feels like a great value stock at the moment.


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