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Is Cenovus Energy (CVE) Stock Undervalued 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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 value investors might notice is Cenovus Energy (CVE - Free Report) . CVE is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 12.78 right now. For comparison, its industry sports an average P/E of 15.26. CVE's Forward P/E has been as high as 15.19 and as low as 6.47, with a median of 10.45, all within the past year.
Investors should also recognize that CVE has a P/B ratio of 1.44. The P/B is a method of comparing a stock's market value to 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 1.73. CVE's P/B has been as high as 1.57 and as low as 0.93, with a median of 1.27, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CVE has a P/S ratio of 0.92. This compares to its industry's average P/S of 1.09.
Finally, we should also recognize that CVE has a P/CF ratio of 5.63. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.33. CVE's P/CF has been as high as 5.82 and as low as 3.46, with a median of 4.49, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Cenovus Energy is likely undervalued currently. And when considering the strength of its earnings outlook, CVE sticks out as one of the market's strongest value stocks.
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Is Cenovus Energy (CVE) Stock Undervalued Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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 value investors might notice is Cenovus Energy (CVE - Free Report) . CVE is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 12.78 right now. For comparison, its industry sports an average P/E of 15.26. CVE's Forward P/E has been as high as 15.19 and as low as 6.47, with a median of 10.45, all within the past year.
Investors should also recognize that CVE has a P/B ratio of 1.44. The P/B is a method of comparing a stock's market value to 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 1.73. CVE's P/B has been as high as 1.57 and as low as 0.93, with a median of 1.27, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CVE has a P/S ratio of 0.92. This compares to its industry's average P/S of 1.09.
Finally, we should also recognize that CVE has a P/CF ratio of 5.63. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.33. CVE's P/CF has been as high as 5.82 and as low as 3.46, with a median of 4.49, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Cenovus Energy is likely undervalued currently. And when considering the strength of its earnings outlook, CVE sticks out as one of the market's strongest value stocks.