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Is Unicom (CHU) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Unicom (CHU - Free Report) . CHU is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

CHU is also sporting a PEG ratio of 0.29. 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. CHU's PEG compares to its industry's average PEG of 0.63. Over the last 12 months, CHU's PEG has been as high as 0.36 and as low as 0.29, with a median of 0.31.

Another valuation metric that we should highlight is CHU's P/B ratio of 0.80. 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 attractive against its industry's average P/B of 1.02. Over the past 12 months, CHU's P/B has been as high as 0.94 and as low as 0.66, with a median of 0.76.

These are just a handful of the figures considered in Unicom's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CHU is an impressive value stock right now.


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