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Is Centerra Gold (CGAU) Stock Undervalued Right Now?
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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Centerra Gold (CGAU - Free Report) . CGAU is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 10.19. This compares to its industry's average Forward P/E of 15.99. Over the past year, CGAU's Forward P/E has been as high as 212.86 and as low as 9.71, with a median of 13.88.
We should also highlight that CGAU has a P/B ratio of 0.84. The P/B ratio pits a stock's market value against 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 1.36. Over the past year, CGAU's P/B has been as high as 0.94 and as low as 0.57, with a median of 0.75.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CGAU has a P/S ratio of 1.29. This compares to its industry's average P/S of 3.37.
Finally, investors will want to recognize that CGAU has a P/CF ratio of 7.30. 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 12.39. Within the past 12 months, CGAU's P/CF has been as high as 27.27 and as low as -18.01, with a median of 6.53.
Another great Mining - Gold stock you could consider is Kinross Gold (KGC - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Kinross Gold is trading at a forward earnings multiple of 15.87 at the moment, with a PEG ratio of 0.53. This compares to its industry's average P/E of 15.99 and average PEG ratio of 0.52.
KGC's Forward P/E has been as high as 19 and as low as 10.88, with a median of 13.73. During the same time period, its PEG ratio has been as high as 2.13, as low as 0.41, with a median of 0.95.
Kinross Gold sports a P/B ratio of 1.75 as well; this compares to its industry's price-to-book ratio of 1.36. In the past 52 weeks, KGC's P/B has been as high as 1.75, as low as 0.87, with a median of 1.10.
Value investors will likely look at more than just these metrics, but the above data helps show that Centerra Gold and Kinross Gold are likely undervalued currently. And when considering the strength of its earnings outlook, CGAU and KGC sticks out as one of the market's strongest value stocks.
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Is Centerra Gold (CGAU) Stock Undervalued Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company value investors might notice is Centerra Gold (CGAU - Free Report) . CGAU is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 10.19. This compares to its industry's average Forward P/E of 15.99. Over the past year, CGAU's Forward P/E has been as high as 212.86 and as low as 9.71, with a median of 13.88.
We should also highlight that CGAU has a P/B ratio of 0.84. The P/B ratio pits a stock's market value against 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 1.36. Over the past year, CGAU's P/B has been as high as 0.94 and as low as 0.57, with a median of 0.75.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. CGAU has a P/S ratio of 1.29. This compares to its industry's average P/S of 3.37.
Finally, investors will want to recognize that CGAU has a P/CF ratio of 7.30. 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 12.39. Within the past 12 months, CGAU's P/CF has been as high as 27.27 and as low as -18.01, with a median of 6.53.
Another great Mining - Gold stock you could consider is Kinross Gold (KGC - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.
Kinross Gold is trading at a forward earnings multiple of 15.87 at the moment, with a PEG ratio of 0.53. This compares to its industry's average P/E of 15.99 and average PEG ratio of 0.52.
KGC's Forward P/E has been as high as 19 and as low as 10.88, with a median of 13.73. During the same time period, its PEG ratio has been as high as 2.13, as low as 0.41, with a median of 0.95.
Kinross Gold sports a P/B ratio of 1.75 as well; this compares to its industry's price-to-book ratio of 1.36. In the past 52 weeks, KGC's P/B has been as high as 1.75, as low as 0.87, with a median of 1.10.
Value investors will likely look at more than just these metrics, but the above data helps show that Centerra Gold and Kinross Gold are likely undervalued currently. And when considering the strength of its earnings outlook, CGAU and KGC sticks out as one of the market's strongest value stocks.