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Are Investors Undervaluing PetroChina (PTR) 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. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 6.87 right now. For comparison, its industry sports an average P/E of 10.03. Over the past year, PTR's Forward P/E has been as high as 94.84 and as low as 6.83, with a median of 19.36.

We should also highlight that PTR has a P/B ratio of 0.37. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. PTR's current P/B looks attractive when compared to its industry's average P/B of 0.95. 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.

These are only a few of the key metrics included in PetroChina's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, PTR looks like an impressive value stock at the moment.


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PetroChina Company Limited (PTR): Free Stock Analysis Report
 
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