While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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.
One company value investors might notice is Crescent Point Energy (CPG). CPG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Another valuation metric that we should highlight is CPG's P/B ratio of 0.38. The P/B is a method of comparing a stock's market value to 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 0.94. Over the past 12 months, CPG's P/B has been as high as 0.54 and as low as 0.26, with a median of 0.39.
Finally, investors will want to recognize that CPG has a P/CF ratio of 0.87. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 3.35. CPG's P/CF has been as high as 1.22 and as low as 0.65, with a median of 0.92, 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
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