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Are Investors Undervaluing PetroChina (PTR) 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.

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 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 company value investors might notice is PetroChina (PTR). PTR is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.18, which compares to its industry's average of 9.36. PTR's Forward P/E has been as high as 22.38 and as low as 5.81, with a median of 9.81, all within the past year.

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Investors should also recognize that PTR has a P/B ratio of 0.44. The P/B ratio is used to compare a stock's market value with 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 1.16. Over the past year, PTR's P/B has been as high as 0.45 and as low as 0.26, with a median of 0.34.

These figures are just a handful of the metrics value investors tend to look at, but they help show that PetroChina is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, PTR feels like a great value stock at the moment.


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