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Is CNOOC (CEO) a Great Value Stock Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company value investors might notice is CNOOC (CEO - Free Report) . CEO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.21. This compares to its industry's average Forward P/E of 12.75. CEO's Forward P/E has been as high as 24.17 and as low as 6.91, with a median of 10.09, all within the past year.

Investors should also note that CEO holds a PEG ratio of 1.53. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CEO's PEG compares to its industry's average PEG of 1.80. Within the past year, CEO's PEG has been as high as 3.64 and as low as 1.04, with a median of 1.69.

Investors should also recognize that CEO has a P/B ratio of 0.82. 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 attractive against its industry's average P/B of 1.62. Over the past 12 months, CEO's P/B has been as high as 1.25 and as low as 0.59, with a median of 0.80.

These figures are just a handful of the metrics value investors tend to look at, but they help show that CNOOC is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CEO feels like a great value stock at the moment.


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