Yahoo Finance Why You Should Invest in CrossAmerica Partners (CAPL) Now
CrossAmerica Partners LP’s CAPL planned investments and disinvestments along with growth estimates make it a solid investment option. Also, its strong financial position acts as a tailwind.
Let’s analyze the factors that make this currently Zacks Rank #2 (Buy) firm an ideal investment bet. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Estimate Revision
The Zacks Consensus Estimate for 2022 earnings per unit is pegged at 98 cents per unit, suggesting a hike of 5.41% in the past 60 days. While 2021 earnings were flat in the same time frame.
Surprise History
CrossAmerica Partners’ trailing four-quarter earnings surprise is 97.72%, on average.
Strategic Moves
On Apr 14, 2020, the firm completed the acquisition (announced on Jan 15, 2020) of retail/wholesale assets. The deal includes retail operations at 169 sites (154 company-operated sites and 15 commission sites). Also, it completed the asset exchange with Couche-Tard/Circle Kis in September 2020.
Strong Financial Position
The firm’s debt-to-capital is 2.34% compared with the industry’s 66.50%. Net cash provided by operating activities in 2020 was $104.5 million compared with $72.3 million in 2019. Also, its times interest earned (TIE) ratio improved to 7 at the end of the fourth quarter from 6.16 at the end of the third quarter of last year. Such a strong TIE ratio reflects the partnership’s ability to meet its debt obligations in the near future.
Return on Equity (ROE)
The firm’s ROE for the trailing 12 months is 21.86%, comparing favorably with the Zacks S&P 500 Composite’s 20.42%. This uptrend reflects its higher efficiency in utilizing unitholders’ funds than the Zacks S&P 500 composite.
Stock Movement
The share price has jumped 103.3%, outperforming the industry’s growth of 69.7% in the past year.
Other Stocks to Consider
A few other top-ranked stocks in the same sector are Eni SpA E, Global Partners LP GLP and Chevron Corporation CVX, all flaunting a Zacks Rank#1, presently.
The Zacks Consensus Estimate for Eni SpA’s 2021 earnings has moved 60.6% north to $1.75 in the past 60 days. The company’s long-term (three-five years) earnings growth rate is pegged at 19.5%.
The Zacks Consensus Estimate for Global Partners’ 2021 earnings has moved 57% north to $1.24 in the past 60 days. It delivered a trailing four-quarter earnings surprise of 262.76%, on average.
The Zacks Consensus Estimate for Chevron Corporation’s 2021 earnings has moved 54.3% north to $5.20 in the past 60 days. The company’s long-term earnings growth rate stands at 5%.
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