Yahoo Finance Should Value Investors Buy China Resources Power Holdings (CRPJY) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 stock to keep an eye on is China Resources Power Holdings (CRPJY). CRPJY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 5.17, while its industry has an average P/E of 14.53. Over the past year, CRPJY's Forward P/E has been as high as 9.08 and as low as 3.70, with a median of 5.74.
Investors should also recognize that CRPJY has a P/B ratio of 0.76. 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 stock's P/B looks attractive against its industry's average P/B of 2.09. Over the past year, CRPJY's P/B has been as high as 0.90 and as low as 0.54, with a median of 0.66.
Another great Utility - Electric Power stock you could consider is TransAlta (TAC), which is a # 1 (Strong Buy) stock with a Value Score of A.
Additionally, TransAlta has a P/B ratio of 2.17 while its industry's price-to-book ratio sits at 2.09. For TAC, this valuation metric has been as high as 2.65, as low as 1.87, with a median of 2.20 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 TransAlta are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CRPJY and TAC feels like a great value stock at the moment.
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China Resources Power Holdings Co. (CRPJY) : Free Stock Analysis Report
TransAlta Corporation (TAC) : Free Stock Analysis Report
