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EGO or TFPM: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Mining - Gold sector have probably already heard of Eldorado Gold Corporation (EGO - Free Report) and Triple Flag Precious Metals (TFPM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Eldorado Gold Corporation is sporting a Zacks Rank of #1 (Strong Buy), while Triple Flag Precious Metals has a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that EGO is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
EGO currently has a forward P/E ratio of 15.18, while TFPM has a forward P/E of 31.99. We also note that EGO has a PEG ratio of 0.30. 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. TFPM currently has a PEG ratio of 0.95.
Another notable valuation metric for EGO is its P/B ratio of 0.95. 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, TFPM has a P/B of 1.78.
These metrics, and several others, help EGO earn a Value grade of B, while TFPM has been given a Value grade of D.
EGO is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that EGO is likely the superior value option right now.
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EGO or TFPM: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Mining - Gold sector have probably already heard of Eldorado Gold Corporation (EGO - Free Report) and Triple Flag Precious Metals (TFPM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Right now, Eldorado Gold Corporation is sporting a Zacks Rank of #1 (Strong Buy), while Triple Flag Precious Metals has a Zacks Rank of #2 (Buy). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that EGO is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its 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.
EGO currently has a forward P/E ratio of 15.18, while TFPM has a forward P/E of 31.99. We also note that EGO has a PEG ratio of 0.30. 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. TFPM currently has a PEG ratio of 0.95.
Another notable valuation metric for EGO is its P/B ratio of 0.95. 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, TFPM has a P/B of 1.78.
These metrics, and several others, help EGO earn a Value grade of B, while TFPM has been given a Value grade of D.
EGO is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that EGO is likely the superior value option right now.