Should Value Investors Buy Centerra Gold (CGAU) Stock?

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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 stock to keep an eye on is Centerra Gold (CGAU). CGAU is currently sporting a Zacks Rank #1 (Strong Buy), as well as a Value grade of A. The stock holds a P/E ratio of 9.53, while its industry has an average P/E of 14.49. CGAU's Forward P/E has been as high as 12.58 and as low as 6.58, with a median of 9.65, all within the past year.

Another valuation metric that we should highlight is CGAU's P/B ratio of 1.14. 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. CGAU's current P/B looks attractive when compared to its industry's average P/B of 3.39. Over the past year, CGAU's P/B has been as high as 1.14 and as low as 0.67, with a median of 0.84.

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 preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CGAU has a P/S ratio of 2.75. This compares to its industry's average P/S of 5.86.

Finally, our model also underscores that CGAU has a P/CF ratio of 10.35. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. CGAU's P/CF compares to its industry's average P/CF of 16.04. CGAU's P/CF has been as high as 10.35 and as low as 4.87, with a median of 6.62, all within the past year.

Another great Mining - Gold stock you could consider is Iamgold (IAG), which is a Zacks Rank of #2 (Buy) stock with a Value Score of A.

Iamgold is currently trading with a Forward P/E ratio of 10.50 while its PEG ratio sits at 0.27. Both of the company's metrics compare favorably to its industry's average P/E of 14.49 and average PEG ratio of 0.41.

Over the past year, IAG's P/E has been as high as 11.58, as low as 6.48, with a median of 8.31; its PEG ratio has been as high as 1.23, as low as 0.17, with a median of 0.30 during the same time period.

Iamgold sports a P/B ratio of 1.90 as well; this compares to its industry's price-to-book ratio of 3.39. In the past 52 weeks, IAG's P/B has been as high as 1.91, as low as 0.78, with a median of 1.07.

These are just a handful of the figures considered in Centerra Gold and Iamgold'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 CGAU and IAG is an impressive value stock right now.

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This article originally published on Zacks Investment Research (zacks.com).

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