Yahoo Finance Global Partners LP (GLP) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of Global Partners LP (GLP)? Shares have been on the move with the stock up 3.4% over the past month. The stock hit a new 52-week high of $36.8 in the previous session. Global Partners LP has gained 4.8% since the start of the year compared to the 44.7% move for the Zacks Oils-Energy sector and the 27.3% return for the Zacks Oil and Gas - Refining and Marketing - Master Limited Partnerships industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on November 4, 2022, Global Partners LP reported EPS of $3.12 versus consensus estimate of $1.33 while it beat the consensus revenue estimate by 12.44%.
For the current fiscal year, Global Partners LP is expected to post earnings of $3.20 per share on $18.96 billion in revenues.
Valuation Metrics
Global Partners LP may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
Global Partners LP has a Value Score of A. The stock's Growth and Momentum Scores are A and F, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 11.4X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11.9X. On a trailing cash flow basis, the stock currently trades at 5.8X versus its peer group's average of 6.9X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Global Partners LP currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Global Partners LP passes the test. Thus, it seems as though Global Partners LP shares could still be poised for more gains ahead.
How Does GLP Stack Up to the Competition?
Shares of GLP have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is CrossAmerica Partners LP (CAPL). CAPL has a Zacks Rank of # 2 (Buy) and a Value Score of A, a Growth Score of A, and a Momentum Score of F.
Earnings were strong last quarter. CrossAmerica Partners LP beat our consensus estimate by 129.03%, and for the current fiscal year, CAPL is expected to post earnings of $0.92 per share on revenue of $4.57 billion.
Shares of CrossAmerica Partners LP have gained 9.1% over the past month, and currently trade at a forward P/E of 23.83X and a P/CF of 8.19X.
The Oil and Gas - Refining and Marketing - Master Limited Partnerships industry is in the top 1% of all the industries we have in our universe, so it looks like there are some nice tailwinds for GLP and CAPL, even beyond their own solid fundamental situation.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Global Partners LP (GLP) : Free Stock Analysis Report
CrossAmerica Partners LP (CAPL) : Free Stock Analysis Report
