Is CNOOC (CEO) a Great Value Stock 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

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

CEO is also sporting a PEG ratio of 0.32. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CEO's industry has an average PEG of 0.37 right now. Over the last 12 months, CEO's PEG has been as high as 1.41 and as low as 0.31, with a median of 0.49.

Investors should also recognize that CEO has a P/B ratio of 1.21. 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 1.93. Within the past 52 weeks, CEO's P/B has been as high as 1.44 and as low as 1.03, with a median of 1.19.

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

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