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Should Value Investors Buy Sibanye Gold Limited (SBSW) Stock?

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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 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 Sibanye Gold Limited (SBSW - Free Report) . SBSW 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 5.03 right now. For comparison, its industry sports an average P/E of 10.92. Over the past 52 weeks, SBSW's Forward P/E has been as high as 6.84 and as low as 2.37, with a median of 4.26.

Another notable valuation metric for SBSW is its P/B ratio of 2.99. 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 3.36. SBSW's P/B has been as high as 4.49 and as low as 1.92, with a median of 2.85, over the past year.

These are only a few of the key metrics included in Sibanye Gold Limited'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, SBSW looks like an impressive value stock at the moment.


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