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Is Equinox Gold (EQX) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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.

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.

One company to watch right now is Equinox Gold (EQX - Free Report) . EQX is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.

We should also highlight that EQX has a P/B ratio of 0.75. 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 stock's P/B looks solid versus its industry's average P/B of 1.47. Within the past 52 weeks, EQX's P/B has been as high as 0.86 and as low as 0.52, with a median of 0.62.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. EQX has a P/S ratio of 1.92. This compares to its industry's average P/S of 3.45.

Finally, investors should note that EQX has a P/CF ratio of 7.25. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. EQX's P/CF compares to its industry's average P/CF of 11.09. Over the past year, EQX's P/CF has been as high as 15.86 and as low as 4.91, with a median of 6.58.

These are just a handful of the figures considered in Equinox Gold's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that EQX is an impressive value stock right now.


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