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Should Value Investors Buy Lundin Mining (LUNMF) Stock?
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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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Lundin Mining (LUNMF - Free Report) . LUNMF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.95, while its industry has an average P/E of 23.49. Over the last 12 months, LUNMF's Forward P/E has been as high as 18.82 and as low as 7.75, with a median of 12.37.
Another notable valuation metric for LUNMF is its P/B ratio of 1.38. The P/B ratio is used to compare a stock's market value with 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 3.56. Within the past 52 weeks, LUNMF's P/B has been as high as 1.58 and as low as 0.72, with a median of 1.04.
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. LUNMF has a P/S ratio of 2.38. This compares to its industry's average P/S of 2.93.
Finally, our model also underscores that LUNMF has a P/CF ratio of 10.59. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. LUNMF's P/CF compares to its industry's average P/CF of 20.94. Over the past year, LUNMF's P/CF has been as high as 12.22 and as low as 4.98, with a median of 7.08.
Value investors will likely look at more than just these metrics, but the above data helps show that Lundin Mining is likely undervalued currently. And when considering the strength of its earnings outlook, LUNMF sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Lundin Mining (LUNMF) Stock?
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Lundin Mining (LUNMF - Free Report) . LUNMF is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.95, while its industry has an average P/E of 23.49. Over the last 12 months, LUNMF's Forward P/E has been as high as 18.82 and as low as 7.75, with a median of 12.37.
Another notable valuation metric for LUNMF is its P/B ratio of 1.38. The P/B ratio is used to compare a stock's market value with 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 3.56. Within the past 52 weeks, LUNMF's P/B has been as high as 1.58 and as low as 0.72, with a median of 1.04.
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. LUNMF has a P/S ratio of 2.38. This compares to its industry's average P/S of 2.93.
Finally, our model also underscores that LUNMF has a P/CF ratio of 10.59. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. LUNMF's P/CF compares to its industry's average P/CF of 20.94. Over the past year, LUNMF's P/CF has been as high as 12.22 and as low as 4.98, with a median of 7.08.
Value investors will likely look at more than just these metrics, but the above data helps show that Lundin Mining is likely undervalued currently. And when considering the strength of its earnings outlook, LUNMF sticks out at as one of the market's strongest value stocks.