Is PetroChina (PTR) 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. Neverthe...
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.
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.
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 PetroChina (PTR). PTR is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 6.32, which compares to its industry's average of 9.01. Over the past year, PTR's Forward P/E has been as high as 56.32 and as low as 6.19, with a median of 18.24.
Another valuation metric that we should highlight is PTR's P/B ratio of 0.34. The P/B ratio pits a stock's market value against 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. Over the past 12 months, PTR's P/B has been as high as 0.43 and as low as 0.26, with a median of 0.31.
Value investors will likely look at more than just these metrics, but the above data helps show that PetroChina is likely undervalued currently. And when considering the strength of its earnings outlook, PTR sticks out at as one of the market's strongest value stocks.
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PetroChina Company Limited (PTR): Free Stock Analysis Report
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