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Is Crescent Point Energy (CPG) a Great Value Stock Right Now?

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  • CPG

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Crescent Point Energy (CPG) is a stock many investors are watching right now. CPG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 4.84, which compares to its industry's average of 7.93. Over the past year, CPG's Forward P/E has been as high as 1,525.18 and as low as -287.39, with a median of 5.84.

We should also highlight that CPG has a P/B ratio of 0.88. 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 1.36. Over the past year, CPG's P/B has been as high as 1.24 and as low as 0.28, with a median of 0.73.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CPG has a P/S ratio of 1.45. This compares to its industry's average P/S of 1.74.

Finally, investors will want to recognize that CPG has a P/CF ratio of 5.47. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 7.02. Over the past year, CPG's P/CF has been as high as 7.77 and as low as 0.36, with a median of 1.19.

Value investors will likely look at more than just these metrics, but the above data helps show that Crescent Point Energy is likely undervalued currently. And when considering the strength of its earnings outlook, CPG sticks out at as one of the market's strongest value stocks.


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