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ARREF vs. SCCO: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Mining - Non Ferrous sector might want to consider either Amerigo Resources (ARREF - Free Report) or Southern Copper (SCCO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Amerigo Resources is sporting a Zacks Rank of #1 (Strong Buy), while Southern Copper has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ARREF likely has seen a stronger improvement to its earnings outlook than SCCO has recently. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ARREF currently has a forward P/E ratio of 9.17, while SCCO has a forward P/E of 16.93. We also note that ARREF has a PEG ratio of 0.46. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SCCO currently has a PEG ratio of 14.11.
Another notable valuation metric for ARREF is its P/B ratio of 1.54. 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. By comparison, SCCO has a P/B of 6.49.
These are just a few of the metrics contributing to ARREF's Value grade of A and SCCO's Value grade of C.
ARREF stands above SCCO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ARREF is the superior value option right now.
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ARREF vs. SCCO: Which Stock Is the Better Value Option?
Investors looking for stocks in the Mining - Non Ferrous sector might want to consider either Amerigo Resources (ARREF - Free Report) or Southern Copper (SCCO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Amerigo Resources is sporting a Zacks Rank of #1 (Strong Buy), while Southern Copper has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that ARREF likely has seen a stronger improvement to its earnings outlook than SCCO has recently. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
ARREF currently has a forward P/E ratio of 9.17, while SCCO has a forward P/E of 16.93. We also note that ARREF has a PEG ratio of 0.46. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SCCO currently has a PEG ratio of 14.11.
Another notable valuation metric for ARREF is its P/B ratio of 1.54. 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. By comparison, SCCO has a P/B of 6.49.
These are just a few of the metrics contributing to ARREF's Value grade of A and SCCO's Value grade of C.
ARREF stands above SCCO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ARREF is the superior value option right now.