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Are Investors Undervaluing China Cosco Holdings (CICOY) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 company to watch right now is China Cosco Holdings (CICOY - Free Report) . CICOY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 8.77 right now. For comparison, its industry sports an average P/E of 10.78. Over the last 12 months, CICOY's Forward P/E has been as high as 226.71 and as low as -768.42, with a median of 25.26.

Investors should also recognize that CICOY has a P/B ratio of 0.54. Investors use the P/B ratio to look at a stock's market value versus 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 0.91. Over the past year, CICOY's P/B has been as high as 0.77 and as low as 0.51, with a median of 0.59.

These are just a handful of the figures considered in China Cosco Holdings'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 CICOY is an impressive value stock right now.


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