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Are Investors Undervaluing Unicom (CHU) Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

Unicom (CHU - Free Report) is a stock many investors are watching right now. CHU is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 6.45 right now. For comparison, its industry sports an average P/E of 12.12. CHU's Forward P/E has been as high as 12.38 and as low as 5.98, with a median of 9.23, all within the past year.

Investors should also note that CHU holds a PEG ratio of 0.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CHU's industry currently sports an average PEG of 1.07. CHU's PEG has been as high as 1.10 and as low as 0.53, with a median of 0.80, all within the past year.

Value investors will likely look at more than just these metrics, but the above data helps show that Unicom is likely undervalued currently. And when considering the strength of its earnings outlook, CHU sticks out at as one of the market's strongest value stocks.


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