Quantcast

Why Sinopec (SNP) is Such a Great Value Stock Pick Right Now


Shutterstock photo

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 Petroleum & Chemical CorporationSNP widely known as Sinopec.

Sinopec in Focus

SNP may be an interesting play thanks to its forward PE of 8.9 its P/S ratio of 0.3, and its decent dividend yield of 4.8%. These factors suggest that Sinopec is a pretty good value pick, as investors have to pay a relatively low level for each dollar of earnings, and that SNP has decent revenue metrics to back up its earnings.

China Petroleum & Chemical Corporation PE Ratio (TTM)

China Petroleum & Chemical Corporation PE Ratio (TTM) | China Petroleum & Chemical Corporation Quote



But before you think that Sinopec 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 2.9% in the past 60 days, thanks to one upward revision in the past two months compared to none lower.

This estimate strength is actually enough to push SNP to a Zacks Rank #2 (Buy), suggesting it is poised to outperform. You can seeĀ  the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

So really, Sinopec 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.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


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

China Petroleum & Chemical Corporation (SNP): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Investing Ideas , Stocks
Referenced Symbols: SNP



More from Zacks.com

Subscribe






Zacks.com
Contributor:

Zacks.com

Equity Research










Research Brokers before you trade

Want to trade FX?