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Are Investors Undervaluing Barrick Gold (GOLD) Right Now?
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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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now is Barrick Gold (GOLD - Free Report) . GOLD is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 14.53, which compares to its industry's average of 15.24. Over the last 12 months, GOLD's Forward P/E has been as high as 22.29 and as low as 13.15, with a median of 15.65.
GOLD is also sporting a PEG ratio of 0.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GOLD's PEG compares to its industry's average PEG of 0.45. GOLD's PEG has been as high as 8.71 and as low as 0.38, with a median of 1.28, all within the past year.
Another valuation metric that we should highlight is GOLD's P/B ratio of 0.95. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.27. GOLD's P/B has been as high as 1.02 and as low as 0.77, with a median of 0.91, over the past year.
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. GOLD has a P/S ratio of 2.52. This compares to its industry's average P/S of 3.46.
Finally, investors will want to recognize that GOLD has a P/CF ratio of 8.71. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.90. Within the past 12 months, GOLD's P/CF has been as high as 15.75 and as low as 7.45, with a median of 12.94.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Barrick Gold is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GOLD feels like a great value stock at the moment.
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Are Investors Undervaluing Barrick Gold (GOLD) Right Now?
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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now is Barrick Gold (GOLD - Free Report) . GOLD is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 14.53, which compares to its industry's average of 15.24. Over the last 12 months, GOLD's Forward P/E has been as high as 22.29 and as low as 13.15, with a median of 15.65.
GOLD is also sporting a PEG ratio of 0.38. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. GOLD's PEG compares to its industry's average PEG of 0.45. GOLD's PEG has been as high as 8.71 and as low as 0.38, with a median of 1.28, all within the past year.
Another valuation metric that we should highlight is GOLD's P/B ratio of 0.95. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.27. GOLD's P/B has been as high as 1.02 and as low as 0.77, with a median of 0.91, over the past year.
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. GOLD has a P/S ratio of 2.52. This compares to its industry's average P/S of 3.46.
Finally, investors will want to recognize that GOLD has a P/CF ratio of 8.71. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.90. Within the past 12 months, GOLD's P/CF has been as high as 15.75 and as low as 7.45, with a median of 12.94.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Barrick Gold is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GOLD feels like a great value stock at the moment.