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GOLD vs. AEM: Which Stock Is the Better Value Option?
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Investors interested in Mining - Gold stocks are likely familiar with Barrick Gold (GOLD - Free Report) and 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Barrick Gold has a Zacks Rank of #2 (Buy), while Agnico Eagle Mines has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GOLD is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
GOLD currently has a forward P/E ratio of 17.26, while AEM has a forward P/E of 23.78. We also note that GOLD has a PEG ratio of 0.53. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AEM currently has a PEG ratio of 0.83.
Another notable valuation metric for GOLD is its P/B ratio of 1.01. 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. By comparison, AEM has a P/B of 1.91.
Based on these metrics and many more, GOLD holds a Value grade of A, while AEM has a Value grade of C.
GOLD has seen stronger estimate revision activity and sports more attractive valuation metrics than AEM, so it seems like value investors will conclude that GOLD is the superior option right now.
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GOLD vs. AEM: Which Stock Is the Better Value Option?
Investors interested in Mining - Gold stocks are likely familiar with Barrick Gold (GOLD - Free Report) and 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.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Barrick Gold has a Zacks Rank of #2 (Buy), while Agnico Eagle Mines has a Zacks Rank of #3 (Hold) right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GOLD is likely seeing its earnings outlook improve to a greater extent. But this is just one piece of the puzzle for value investors.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
GOLD currently has a forward P/E ratio of 17.26, while AEM has a forward P/E of 23.78. We also note that GOLD has a PEG ratio of 0.53. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AEM currently has a PEG ratio of 0.83.
Another notable valuation metric for GOLD is its P/B ratio of 1.01. 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. By comparison, AEM has a P/B of 1.91.
Based on these metrics and many more, GOLD holds a Value grade of A, while AEM has a Value grade of C.
GOLD has seen stronger estimate revision activity and sports more attractive valuation metrics than AEM, so it seems like value investors will conclude that GOLD is the superior option right now.