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Should Value Investors Buy Fortuna Silver Mines (FSM) Stock?
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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.
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Fortuna Silver Mines (FSM - Free Report) is a stock many investors are watching right now. FSM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 12.79. This compares to its industry's average Forward P/E of 33.07. Over the past year, FSM's Forward P/E has been as high as 7,184.73 and as low as -8,857.34, with a median of 7.73.
We should also highlight that FSM has a P/B ratio of 1.18. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. FSM's current P/B looks attractive when compared to its industry's average P/B of 1.62. Within the past 52 weeks, FSM's P/B has been as high as 1.46 and as low as 0.59, with a median of 0.77.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FSM has a P/S ratio of 1.73. This compares to its industry's average P/S of 3.17.
Finally, our model also underscores that FSM has a P/CF ratio of 8.25. 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. FSM's current P/CF looks attractive when compared to its industry's average P/CF of 22.64. Over the past year, FSM's P/CF has been as high as 40.83 and as low as 4.81, with a median of 10.19.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Fortuna Silver Mines is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FSM feels like a great value stock at the moment.
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Should Value Investors Buy Fortuna Silver Mines (FSM) Stock?
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.
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
Fortuna Silver Mines (FSM - Free Report) is a stock many investors are watching right now. FSM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 12.79. This compares to its industry's average Forward P/E of 33.07. Over the past year, FSM's Forward P/E has been as high as 7,184.73 and as low as -8,857.34, with a median of 7.73.
We should also highlight that FSM has a P/B ratio of 1.18. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. FSM's current P/B looks attractive when compared to its industry's average P/B of 1.62. Within the past 52 weeks, FSM's P/B has been as high as 1.46 and as low as 0.59, with a median of 0.77.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. FSM has a P/S ratio of 1.73. This compares to its industry's average P/S of 3.17.
Finally, our model also underscores that FSM has a P/CF ratio of 8.25. 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. FSM's current P/CF looks attractive when compared to its industry's average P/CF of 22.64. Over the past year, FSM's P/CF has been as high as 40.83 and as low as 4.81, with a median of 10.19.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Fortuna Silver Mines is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FSM feels like a great value stock at the moment.