Is Crescent Point Energy (CPG) Stock Undervalued Right Now?
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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Crescent Point Energy (CPG) is a stock many investors are watching right now. CPG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock holds a P/E ratio of 6.36, while its industry has an average P/E of 11.26. Over the past year, CPG's Forward P/E has been as high as 7.75 and as low as -2,120.62, with a median of 6.20.
Investors should also recognize that CPG has a P/B ratio of 0.95. 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 solid versus its industry's average P/B of 1.87. Over the past 12 months, CPG's P/B has been as high as 1.04 and as low as 0.70, with a median of 0.85.
Finally, we should also recognize that CPG has a P/CF ratio of 3.60. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. CPG's current P/CF looks attractive when compared to its industry's average P/CF of 5.37. CPG's P/CF has been as high as 43.62 and as low as 1.92, with a median of 3.81, all within the past year.
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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Crescent Point Energy Corporation (CPG) : Free Stock Analysis Report
