Is CNOOC (CEO) a Great Value Stock Right Now?

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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

CNOOC (CEO) is a stock many investors are watching right now. CEO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 9.04. This compares to its industry's average Forward P/E of 14.30. CEO's Forward P/E has been as high as 24.17 and as low as 6.91, with a median of 10.04, all within the past year.

CEO is also sporting a PEG ratio of 1.36. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CEO's PEG compares to its industry's average PEG of 2.02. Within the past year, CEO's PEG has been as high as 3.64 and as low as 1.04, with a median of 1.78.

Investors should also recognize that CEO has a P/B ratio of 0.69. 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 attractive against its industry's average P/B of 1.62. Over the past 12 months, CEO's P/B has been as high as 1.25 and as low as 0.59, with a median of 0.83.

These figures are just a handful of the metrics value investors tend to look at, but they help show that CNOOC is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CEO feels like a great value stock at the moment.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
CNOOC Limited (CEO) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.