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GOLD or AEM: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Mining - Gold sector might want to consider either Barrick Gold (GOLD - Free Report) or Agnico Eagle Mines (AEM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both Barrick Gold and Agnico Eagle Mines are holding a Zacks Rank of # 1 (Strong Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
GOLD currently has a forward P/E ratio of 15.96, while AEM has a forward P/E of 21.18. We also note that GOLD has a PEG ratio of 0.42. 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. AEM currently has a PEG ratio of 0.70.
Another notable valuation metric for GOLD is its P/B ratio of 0.92. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, AEM has a P/B of 1.71.
Based on these metrics and many more, GOLD holds a Value grade of B, while AEM has a Value grade of C.
Both GOLD and AEM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GOLD is the superior value option right now.
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GOLD or AEM: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Mining - Gold sector might want to consider either Barrick Gold (GOLD - Free Report) or Agnico Eagle Mines (AEM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, both Barrick Gold and Agnico Eagle Mines are holding a Zacks Rank of # 1 (Strong Buy). This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. However, value investors will care about much more than just this.
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.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
GOLD currently has a forward P/E ratio of 15.96, while AEM has a forward P/E of 21.18. We also note that GOLD has a PEG ratio of 0.42. 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. AEM currently has a PEG ratio of 0.70.
Another notable valuation metric for GOLD is its P/B ratio of 0.92. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, AEM has a P/B of 1.71.
Based on these metrics and many more, GOLD holds a Value grade of B, while AEM has a Value grade of C.
Both GOLD and AEM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GOLD is the superior value option right now.