Global Partners (GLP), a Top Stock to Buy Amid the Spike in Oil Prices

Global Partners (GLP) is highlighted as a strong buy amid rising crude oil prices, driven by geopolitical tensions and supply disruptions, with WTI crude up 15% in the last month. GLP, operating a large refined petroleum product terminal network, has delivered a 23% total return in 2025 and boasts a 5.8% dividend yield with a history of payout increases; furthermore, revenue is projected to surge 37% in fiscal 2025 to $23.55 billion, with EPS estimates also spiking over 20% in the last 60 days for both FY25 and FY26.

Analysis

Escalating geopolitical tensions in the Middle East, notably between Israel and Iran, combined with Canadian wildfires disrupting approximately 350,000 barrels of oil per day and OPEC's inaction on increasing global output, have propelled WTI crude prices upward by 15% in the last month to over $70 a barrel. In this environment, Global Partners (GLP), which operates one of the largest terminal networks for refined petroleum products in the Northeastern United States, is presented as an appealing investment. The company has demonstrated robust performance, achieving a total return of +23% in 2025 (including dividends), outshining the broader market, its Zacks Oil Refining & Marketing MLP peers, and energy majors like Exxon Mobil (XOM) and Chevron (CVX); GLP's stock price alone has appreciated 20% year-to-date. As a Master Limited Partnership (MLP), GLP offers a compelling 5.8% current annual distribution yield, supported by a high 94% payout ratio and a track record of 17 payout increases over the past five years, translating to an annual growth rate of nearly 11%. The financial outlook for GLP is strong, with total sales anticipated to surge 37% in fiscal 2025 to $23.55 billion, up from $17.16 billion in the previous year, and projected to expand a further 17% in fiscal 2026 to over $27 billion. Correspondingly, annual earnings per share (EPS) are forecasted to rise by 18% this year and an additional 6% in FY26 to $3.03 per share. This positive outlook is further substantiated by upward revisions of over 20% to both FY25 and FY26 EPS estimates within the last 60 days. Despite these strong growth indicators, GLP trades at a 19.5X forward earnings multiple, considered reasonable, and currently holds a Zacks Rank #1 (Strong Buy).

Key Decisions for Investors

• Consider Global Partners (GLP) for its combination of potential capital appreciation, driven by projected sales growth of 37% in FY25 and significant recent upward EPS estimate revisions, and attractive income through its 5.8% dividend yield which has grown nearly 11% annually over the past five years.
• Evaluate GLP's Master Limited Partnership structure for its income pass-through benefits stemming from a 94% payout ratio, particularly as the company holds a Zacks Rank #1 (Strong Buy) and is positioned to capitalize on elevated oil prices, while also being mindful of the specific tax implications associated with MLPs.
• Continuously monitor developments in crude oil markets, including WTI price trends, OPEC policy decisions, Canadian supply disruptions, and Middle Eastern geopolitical stability, as these external factors are pivotal to GLP's operational environment and the sustainability of its currently positive financial trajectory.