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.
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.
One stock to keep an eye on is B2Gold Corp (BTG). BTG is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 7.07. This compares to its industry's average Forward P/E of 13.06. Over the past 52 weeks, BTG's Forward P/E has been as high as 11.45 and as low as 5.54, with a median of 7.08.
Investors should also note that BTG holds 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 PEG compares to its industry's average PEG of 0.44. Within the past year, BTG's PEG has been as high as 1.60 and as low as 0.22, with a median of 0.30.
Investors should also recognize that BTG has a P/B ratio of 1.52. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.82. BTG's P/B has been as high as 1.57 and as low as 0.84, with a median of 1.16, 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 2.47. This compares to its industry's average P/S of 3.54.
These are only a few of the key metrics included in B2Gold Corp'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, BTG looks like an impressive 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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