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Are Investors Undervaluing China Eastern (CEA) 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 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.
China Eastern (CEA - Free Report) is a stock many investors are watching right now. CEA 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 7.80, which compares to its industry's average of 9.12. Over the past year, CEA's Forward P/E has been as high as 34.04 and as low as 7.51, with a median of 11.42.
Investors should also note that CEA holds a PEG ratio of 0.31. 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. CEA's industry has an average PEG of 0.40 right now. Over the last 12 months, CEA's PEG has been as high as 2.27 and as low as -11.35, with a median of 0.32.
Investors should also recognize that CEA has a P/B ratio of 0.98. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.89. Over the past year, CEA's P/B has been as high as 1.37 and as low as 0.81, with a median of 0.96.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CEA has a P/S ratio of 0.51. This compares to its industry's average P/S of 0.65.
Finally, we should also recognize that CEA has a P/CF ratio of 3.17. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CEA's P/CF compares to its industry's average P/CF of 6.40. Within the past 12 months, CEA's P/CF has been as high as 4.45 and as low as 2.66, with a median of 3.24.
These are just a handful of the figures considered in China Eastern'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 CEA is an impressive value stock right now.
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Are Investors Undervaluing China Eastern (CEA) Right Now?
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.
China Eastern (CEA - Free Report) is a stock many investors are watching right now. CEA 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 7.80, which compares to its industry's average of 9.12. Over the past year, CEA's Forward P/E has been as high as 34.04 and as low as 7.51, with a median of 11.42.
Investors should also note that CEA holds a PEG ratio of 0.31. 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. CEA's industry has an average PEG of 0.40 right now. Over the last 12 months, CEA's PEG has been as high as 2.27 and as low as -11.35, with a median of 0.32.
Investors should also recognize that CEA has a P/B ratio of 0.98. 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 company's current P/B looks solid when compared to its industry's average P/B of 2.89. Over the past year, CEA's P/B has been as high as 1.37 and as low as 0.81, with a median of 0.96.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CEA has a P/S ratio of 0.51. This compares to its industry's average P/S of 0.65.
Finally, we should also recognize that CEA has a P/CF ratio of 3.17. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. CEA's P/CF compares to its industry's average P/CF of 6.40. Within the past 12 months, CEA's P/CF has been as high as 4.45 and as low as 2.66, with a median of 3.24.
These are just a handful of the figures considered in China Eastern'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 CEA is an impressive value stock right now.