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

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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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

Unicom (CHU - Free Report) is a stock many investors are watching right now. CHU is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 10.72. This compares to its industry's average Forward P/E of 10.89. Over the last 12 months, CHU's Forward P/E has been as high as 15.06 and as low as 8.14, with a median of 10.64.

Investors will also notice that CHU has a PEG ratio of 0.95. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. CHU's industry has an average PEG of 0.96 right now. Over the last 12 months, CHU's PEG has been as high as 1.10 and as low as 0.72, with a median of 0.92.

These are just a handful of the figures considered in Unicom's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CHU is an impressive value stock right now.


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