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Are These Utilities Stocks a Great Value Stocks Right Now?

·3-min read

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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.

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.

China Resources Power Holdings (CRPJY) is a stock many investors are watching right now. CRPJY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 6.29 right now. For comparison, its industry sports an average P/E of 14.36. Over the past year, CRPJY's Forward P/E has been as high as 28.45 and as low as 3.95, with a median of 6.20.

We should also highlight that CRPJY has a P/B ratio of 0.89. 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 2.08. Over the past 12 months, CRPJY's P/B has been as high as 1.13 and as low as 0.36, with a median of 0.63.

Another great Utility - Electric Power stock you could consider is E.ON (EONGY), which is a # 2 (Buy) stock with a Value Score of A.

Shares of E.ON are currently trading at a forward earnings multiple of 13.42 and a PEG ratio of 1.61 compared to its industry's P/E and PEG ratios of 14.36 and 2.08, respectively.

EONGY's Forward P/E has been as high as 16.81 and as low as 10.95, with a median of 12.35. During the same time period, its PEG ratio has been as high as 2.77, as low as 1.07, with a median of 1.64.

Additionally, E.ON has a P/B ratio of 1.97 while its industry's price-to-book ratio sits at 2.08. For EONGY, this valuation metric has been as high as 2.43, as low as 1.55, with a median of 1.82 over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that China Resources Power Holdings and E.ON are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CRPJY and EONGY feels like a great value stock at the moment.


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China Resources Power Holdings Co. (CRPJY) : Free Stock Analysis Report
 
E.ON SE (EONGY) : Free Stock Analysis Report
 
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