U.S. markets close in 3 hours 48 minutes
  • S&P 500

    3,674.30
    -18.93 (-0.51%)
     
  • Dow 30

    29,414.30
    -176.11 (-0.60%)
     
  • Nasdaq

    10,868.84
    +0.91 (+0.01%)
     
  • Russell 2000

    1,671.05
    -8.54 (-0.51%)
     
  • Crude Oil

    77.45
    -1.29 (-1.64%)
     
  • Gold

    1,640.50
    -15.10 (-0.91%)
     
  • Silver

    18.69
    -0.22 (-1.16%)
     
  • EUR/USD

    0.9617
    -0.0071 (-0.73%)
     
  • 10-Yr Bond

    3.8030
    +0.1060 (+2.87%)
     
  • GBP/USD

    1.0667
    -0.0189 (-1.74%)
     
  • USD/JPY

    144.5500
    +1.2300 (+0.86%)
     
  • BTC-USD

    19,074.34
    +45.73 (+0.24%)
     
  • CMC Crypto 200

    437.98
    +4.88 (+1.13%)
     
  • FTSE 100

    7,020.95
    +2.35 (+0.03%)
     
  • Nikkei 225

    26,431.55
    -722.28 (-2.66%)
     

Is Cenovus Energy (CVE) a Great Value Stock Right Now?

·3 min read

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 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.

One company to watch right now is Cenovus Energy (CVE). CVE is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 4.93, while its industry has an average P/E of 5.10. Over the past 52 weeks, CVE's Forward P/E has been as high as 17.66 and as low as 4.83, with a median of 8.13.

Investors should also recognize that CVE has a P/B ratio of 1.59. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. CVE's current P/B looks attractive when compared to its industry's average P/B of 1.60. Over the past year, CVE's P/B has been as high as 2.56 and as low as 0.79, with a median of 1.61.

If you're looking for another solid Oil and Gas - Integrated - Canadian value stock, take a look at Suncor Energy (SU). SU is a # 2 (Buy) stock with a Value score of A.

Suncor Energy is currently trading with a Forward P/E ratio of 5.23 while its PEG ratio sits at 0.51. Both of the company's metrics compare favorably to its industry's average P/E of 5.10 and average PEG ratio of 0.50.

SU's Forward P/E has been as high as 11.72 and as low as 5.23, with a median of 8.15. During the same time period, its PEG ratio has been as high as 3.91, as low as 0.51, with a median of 1.11.

Additionally, Suncor Energy has a P/B ratio of 1.38 while its industry's price-to-book ratio sits at 1.60. For SU, this valuation metric has been as high as 2, as low as 0.88, with a median of 1.40 over the past year.

These are only a few of the key metrics included in Cenovus Energy and Suncor Energy strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CVE and SU look like an impressive 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
 
Cenovus Energy Inc (CVE) : Free Stock Analysis Report
 
Suncor Energy Inc. (SU) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research