Value investing is always a very popular strategy, and for good reason. After all, who doesn’t want to find stocks that have low PEs, solid outlooks, and decent dividends?
Fortunately for investors looking for this combination, we have identified a strong candidate which may be an impressive value; China Eastern Airlines Corporation Limited (CEA - Free Report) .
China Eastern Airlines in Focus
CEA may be an interesting play thanks to its forward PE of 9, its P/S ratio of 0.5, and its decent dividend yield of 1.2%. These factors suggest that China Eastern Airlines is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that CEA has decent revenue metrics to back up its earnings.
China Eastern Airlines Corporation Ltd. PE Ratio (TTM)
But before you think that China Eastern Airlines is just a pure value play, it is important to note that it has been seeing solid activity on the earnings estimate front as well. For current year earnings, the consensus has gone up by significantly in the past 30 days, thanks to one upward revision in the past one month compared to none lower.
This estimate strength is actually enough to push CEA to a Zacks Rank #1 (Strong Buy), suggesting it is poised to outperform. You can see the complete list of today’s Zacks #1 Rank stocks here.
So really, China Eastern Airlines is looking great from a number of angles thanks to its PE below 20, a P/S ratio below one, and a strong Zacks Rank, meaning that this company could be a great choice for value investors at this time.
Zacks' Best Stock-Picking Strategy
It's hard to believe, even for us at Zacks. But from 2000-2018, while the market gained +4.8% per year, our top stock-picking strategy averaged +54.3% per year.
How has that screen done lately? From 2017-2018, it sextupled the market's +15.8% gain with a soaring +98.3% return.
Free – See the Stocks It Turned Up for Today >>