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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
B2Gold Corp (BTG) is a stock many investors are watching right now. BTG is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 5.85. This compares to its industry's average Forward P/E of 13.82. Over the last 12 months, BTG's Forward P/E has been as high as 11.45 and as low as 5.54, with a median of 7.22.
Investors will also notice that BTG has a PEG ratio of 0.26. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. BTG's industry currently sports an average PEG of 0.49. Within the past year, BTG's PEG has been as high as 1.60 and as low as 0.22, with a median of 0.32.
Another notable valuation metric for BTG is its P/B ratio of 1.27. 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. This stock's P/B looks attractive against its industry's average P/B of 1.63. BTG's P/B has been as high as 1.43 and as low as 0.84, with a median of 1.10, over the past year.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BTG has a P/S ratio of 2.15. This compares to its industry's average P/S of 3.32.
Iamgold (IAG) may be another strong Mining - Gold stock to add to your shortlist. IAG is a # 2 (Buy) stock with a Value grade of A.
Iamgold is currently trading with a Forward P/E ratio of 8.04 while its PEG ratio sits at 0.28. Both of the company's metrics compare favorably to its industry's average P/E of 13.82 and average PEG ratio of 0.49.
IAG's Forward P/E has been as high as 21.28 and as low as 6.48, with a median of 9.26. During the same time period, its PEG ratio has been as high as 1.23, as low as 0.28, with a median of 0.39.
Furthermore, Iamgold holds a P/B ratio of 1.06 and its industry's price-to-book ratio is 1.63. IAG's P/B has been as high as 1.34, as low as 0.76, with a median of 0.95 over the past 12 months.
These are only a few of the key metrics included in B2Gold Corp and Iamgold strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, BTG and IAG look like an impressive value stock at the moment.
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B2Gold Corp (BTG): Free Stock Analysis Report Iamgold Corporation (IAG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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