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

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One company value investors might notice is CNOOC (CEO). CEO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

We also note that CEO holds a PEG ratio of 0.32. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CEO's PEG compares to its industry's average PEG of 0.36. Over the last 12 months, CEO's PEG has been as high as 1.41 and as low as 0.31, with a median of 0.48.

We should also highlight that CEO has a P/B ratio of 1.18. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. CEO's current P/B looks attractive when compared to its industry's average P/B of 1.81. Over the past 12 months, CEO's P/B has been as high as 1.44 and as low as 1.06, with a median of 1.20.

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.

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


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

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