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

Zacks Equity Research

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 stock to keep an eye on is CNOOC (CEO). CEO is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.

Investors should also note that CEO holds a PEG ratio of 0.44. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. CEO's industry has an average PEG of 0.57 right now. Over the last 12 months, CEO's PEG has been as high as 1.35 and as low as 0.30, with a median of 0.39.

Another notable valuation metric for CEO is its P/B ratio of 1.28. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.04. Over the past 12 months, CEO's P/B has been as high as 1.44 and as low as 1.03, with a median of 1.22.

These are only a few of the key metrics included in CNOOC's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CEO looks like an impressive value stock at the moment.


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