Advertisement
Canada markets close in 2 hours 44 minutes

  • S&P/TSX

    21,845.54
    -28.18 (-0.13%)
     

  • S&P 500

    5,032.09
    -39.54 (-0.78%)
     

  • DOW

    38,007.10
    -453.82 (-1.18%)
     

  • CAD/USD

    0.7311
    +0.0014 (+0.19%)
     

  • CRUDE OIL

    82.55
    -0.26 (-0.31%)
     

  • Bitcoin CAD

    88,486.23
    -347.08 (-0.39%)
     

  • CMC Crypto 200

    1,391.72
    +9.15 (+0.66%)
     

  • GOLD FUTURES

    2,340.30
    +1.90 (+0.08%)
     

  • RUSSELL 2000

    1,974.36
    -21.07 (-1.06%)
     

  • 10-Yr Bond

    4.6980
    +0.0460 (+0.99%)
     

  • NASDAQ

    15,541.57
    -171.18 (-1.09%)
     

  • VOLATILITY

    16.39
    +0.42 (+2.63%)
     

  • FTSE

    8,078.86
    +38.48 (+0.48%)
     

  • NIKKEI 225

    37,628.48
    -831.60 (-2.16%)
     

  • CAD/EUR

    0.6807
    -0.0012 (-0.18%)
     
MARKETS LIVE BLOG:

STOCKS SLIDE AFTER META'S REALITY CHECK, DOWNBEAT GDP

Caterpillar sinks 7% after earnings, management sees weakness in Europe, Asia-Pacific

Is Unicom (CHU) a Great Value Stock Right Now?

Zacks Equity Research
·2 min read

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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.

One company to watch right now is Unicom (CHU). CHU is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 7.09. This compares to its industry's average Forward P/E of 11.84. Over the past year, CHU's Forward P/E has been as high as 12.38 and as low as 5.49, with a median of 9.12.

ADVERTISEMENT

CHU is also sporting a PEG ratio of 0.53. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. CHU's PEG compares to its industry's average PEG of 1.04. Within the past year, CHU's PEG has been as high as 1.10 and as low as 0.53, with a median of 0.80.

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


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
China Unicom Hong Kong Ltd (CHU) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.