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Is Crescent Point Energy (CPG) a Great Value Stock Right Now?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is Crescent Point Energy . CPG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 7.02, while its industry has an average P/E of 9.04. Over the last 12 months, CPG's Forward P/E has been as high as 7.75 and as low as 2.34, with a median of 5.98.

We should also highlight that CPG has a P/B ratio of 0.89. 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. CPG's current P/B looks attractive when compared to its industry's average P/B of 1.79. Within the past 52 weeks, CPG's P/B has been as high as 0.93 and as low as 0.64, with a median of 0.79.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CPG has a P/S ratio of 1.47. This compares to its industry's average P/S of 1.63.

Ovintiv (OVV - Free Report) may be another strong Oil and Gas - Exploration and Production - Canadian stock to add to your shortlist. OVV is a # 2 (Buy) stock with a Value grade of A.

Ovintiv is currently trading with a Forward P/E ratio of 6.13 while its PEG ratio sits at 0.46. Both of the company's metrics compare favorably to its industry's average P/E of 9.04 and average PEG ratio of 2.57.

Over the last 12 months, OVV's P/E has been as high as 7.05, as low as 3.29, with a median of 4.29, and its PEG ratio has been as high as 0.53, as low as 0.07, with a median of 0.18.

Ovintiv sports a P/B ratio of 1.47 as well; this compares to its industry's price-to-book ratio of 1.79. In the past 52 weeks, OVV's P/B has been as high as 2.24, as low as 0.99, with a median of 1.39.

These are only a few of the key metrics included in Crescent Point Energy and Ovintiv strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, CPG and OVV look like an impressive value stock at the moment.


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