Is CNOOC (CEO) a Great Value Stock Right Now?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is CNOOC (CEO). CEO is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 8.82, which compares to its industry's average of 13.70. Over the past year, CEO's Forward P/E has been as high as 24.17 and as low as 6.91, with a median of 10.04.
We also note that CEO holds a PEG ratio of 1.33. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CEO's PEG compares to its industry's average PEG of 1.94. Over the last 12 months, CEO's PEG has been as high as 3.64 and as low as 1.04, with a median of 1.78.
Another valuation metric that we should highlight is CEO's P/B ratio of 0.68. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.62. CEO's P/B has been as high as 1.25 and as low as 0.59, with a median of 0.82, over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that CNOOC is likely undervalued currently. And when considering the strength of its earnings outlook, CEO sticks out at as one of the market's strongest value stocks.
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