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Should Value Investors Buy Crescent Point Energy (CPG) Stock?

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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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 company to watch right now is Crescent Point Energy (CPG). CPG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 5.44 right now. For comparison, its industry sports an average P/E of 9.89. 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 -0.82.

Another notable valuation metric for CPG is its P/B ratio of 1.09. 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 1.45. Over the past 12 months, CPG's P/B has been as high as 1.24 and as low as 0.28, with a median of 0.57.

Finally, investors will want to recognize that CPG has a P/CF ratio of 6.82. 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. CPG's P/CF compares to its industry's average P/CF of 7.43. Over the past 52 weeks, CPG's P/CF has been as high as 7.77 and as low as 0.36, with a median of 0.74.

These are just a handful of the figures considered in Crescent Point Energy's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CPG is an impressive value stock right now.


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