Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?
One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s put GasLog Partners LP tock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:
PE Ratio
A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.
On this front, GasLog Partners has a trailing twelve months PE ratio of 10.85, as you can see in the chart below:
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This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 compares in at about 20.20. If we focus on the stock’s long-term PE trend, the current level puts GasLog Partners ’s current PE ratio above its midpoint over the past two years, with the number having risen rapidly over the past few months.
Further, the stock’s PE also compares favorably with the Zacks classified Transportation –Ship industry’s trailing twelve months PE ratio, which stands at 19.49. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.
We should also point out that GasLog Partners has a forward PE ratio (price relative to this year’s earnings) of just 10.12, so it is fair to say that a slightly more value-oriented path may be ahead for GasLog Partners stock in the near term too.
PEG Ratio
While earnings are certainly important, it is essential to know how much you are paying for the growth of earnings as well. One can easily do that with the PEG ratio (ratio of the P/E to the expected future earnings growth rate).The PEG ratio gives a more complete picture of the valuation of a stock than the P/E ratio.
GasLog Partners’ PEG ratio stands at just 1.04, compared with the Zacks Transportation- Ship industry average of 7.64. This suggests a decent undervalued trading relative to its earnings growth potential right now.
Broad Value Outlook
In aggregate, GasLog Partners currently has a Zacks Value Style Score of ‘A’, putting it into the top 20% of all stocks we cover from this look. This makes GasLog Partners a solid choice for value investors.
What About the Stock Overall?
Though GasLog Partners might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth grade of ‘D’ and a Momentum score of ‘C’. This gives GLOP a Zacks VGM score—or its overarching fundamental grade—of‘C’. (You can read more about the Zacks Style Scores here >>)
Meanwhile, the company’s recent earnings estimates have been mixed at best. The current quarter has seen three estimates going higher in the past thirty days compared to none lower, while the full year estimate has seen two upward and two downward revisions in the same time period.
This has had just a small impact on the consensus estimate though as the current quarter consensus estimate has risen by 1.7% in the past two months, while the full year estimate has inched lower by 0.9%. You can see the consensus estimate trend and recent price action for the stock in the chart below:
This mixed trend is why the stock has just a Zacks Rank #3 (Hold) and why we are looking for in-line performance from the company in the near term.
Bottom Line
GasLog Partners is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. However, with a sluggish industry rank (Bottom 39% out of more than 250 industries) and a Zacks Rank #3, it is hard to get too excited about this company overall. In fact, over the past two years, the Zacks Transportation- Ship industry has clearly underperformed the broader S&P 500 market, as you can see below:
So, value investors might want to wait for estimates and analyst sentiment to turn around in this name first, but once that happens, this stock could be a compelling pick.
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Is GasLog Partners a Compelling Pick for Value Investors?
Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn’t want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when compared to fair value?
One way to find these companies is by looking at several key metrics and financial ratios, many of which are crucial in the value stock selection process. Let’s put GasLog Partners LP tock into this equation and find out if it is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks:
PE Ratio
A key metric that value investors always look at is the Price to Earnings Ratio, or PE for short. This shows us how much investors are willing to pay for each dollar of earnings in a given stock, and is easily one of the most popular financial ratios in the world. The best use of the PE ratio is to compare the stock’s current PE ratio with: a) where this ratio has been in the past; b) how it compares to the average for the industry/sector; and c) how it compares to the market as a whole.
On this front, GasLog Partners has a trailing twelve months PE ratio of 10.85, as you can see in the chart below:
This level actually compares pretty favorably with the market at large, as the PE for the S&P 500 compares in at about 20.20. If we focus on the stock’s long-term PE trend, the current level puts GasLog Partners ’s current PE ratio above its midpoint over the past two years, with the number having risen rapidly over the past few months.
Further, the stock’s PE also compares favorably with the Zacks classified Transportation –Ship industry’s trailing twelve months PE ratio, which stands at 19.49. At the very least, this indicates that the stock is relatively undervalued right now, compared to its peers.
We should also point out that GasLog Partners has a forward PE ratio (price relative to this year’s earnings) of just 10.12, so it is fair to say that a slightly more value-oriented path may be ahead for GasLog Partners stock in the near term too.
PEG Ratio
While earnings are certainly important, it is essential to know how much you are paying for the growth of earnings as well. One can easily do that with the PEG ratio (ratio of the P/E to the expected future earnings growth rate).The PEG ratio gives a more complete picture of the valuation of a stock than the P/E ratio.
GasLog Partners’ PEG ratio stands at just 1.04, compared with the Zacks Transportation- Ship industry average of 7.64. This suggests a decent undervalued trading relative to its earnings growth potential right now.
Broad Value Outlook
In aggregate, GasLog Partners currently has a Zacks Value Style Score of ‘A’, putting it into the top 20% of all stocks we cover from this look. This makes GasLog Partners a solid choice for value investors.
What About the Stock Overall?
Though GasLog Partners might be a good choice for value investors, there are plenty of other factors to consider before investing in this name. In particular, it is worth noting that the company has a Growth grade of ‘D’ and a Momentum score of ‘C’. This gives GLOP a Zacks VGM score—or its overarching fundamental grade—of‘C’. (You can read more about the Zacks Style Scores here >>)
Meanwhile, the company’s recent earnings estimates have been mixed at best. The current quarter has seen three estimates going higher in the past thirty days compared to none lower, while the full year estimate has seen two upward and two downward revisions in the same time period.
This has had just a small impact on the consensus estimate though as the current quarter consensus estimate has risen by 1.7% in the past two months, while the full year estimate has inched lower by 0.9%. You can see the consensus estimate trend and recent price action for the stock in the chart below:
GasLog Partners LP Price and Consensus
GasLog Partners LP Price and Consensus | GasLog Partners LP Quote
This mixed trend is why the stock has just a Zacks Rank #3 (Hold) and why we are looking for in-line performance from the company in the near term.
Bottom Line
GasLog Partners is an inspired choice for value investors, as it is hard to beat its incredible lineup of statistics on this front. However, with a sluggish industry rank (Bottom 39% out of more than 250 industries) and a Zacks Rank #3, it is hard to get too excited about this company overall. In fact, over the past two years, the Zacks Transportation- Ship industry has clearly underperformed the broader S&P 500 market, as you can see below:
So, value investors might want to wait for estimates and analyst sentiment to turn around in this name first, but once that happens, this stock could be a compelling pick.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold.Be among the very first to see them >>