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.
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 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 company value investors might notice is B2Gold Corp (BTG). BTG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.34, while its industry has an average P/E of 13.99. 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 7.10.
Investors should also note that BTG holds a PEG ratio of 0.26. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BTG's PEG compares to its industry's 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 0.31.
Investors should also recognize that BTG has a P/B ratio of 1.53. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.85. BTG's P/B has been as high as 1.53 and as low as 0.84, with a median of 1.12, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. BTG has a P/S ratio of 2.5. This compares to its industry's average P/S of 3.41.
These figures are just a handful of the metrics value investors tend to look at, but they help show that B2Gold Corp is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BTG feels like a great value stock at the moment.
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B2Gold Corp (BTG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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