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Are Investors Undervaluing CNOOC (CEO) 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

CNOOC (CEO - Free Report) is a stock many investors are watching right now. CEO is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 8.84, while its industry has an average P/E of 25.55. CEO's Forward P/E has been as high as 24.17 and as low as 6.56, with a median of 9.67, all within the past year.

We also note that CEO holds a PEG ratio of 1.25. 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. CEO's industry currently sports an average PEG of 3.62. CEO's PEG has been as high as 3.64 and as low as 1.13, with a median of 1.65, all within the past year.

Another notable valuation metric for CEO is its P/B ratio of 0.86. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.62. CEO's P/B has been as high as 0.93 and as low as 0.62, with a median of 0.78, 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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