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Should Value Investors Buy Kinross Gold (KGC) 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 Kinross Gold (KGC - Free Report) . KGC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 16.49, while its industry has an average P/E of 16.57. Over the last 12 months, KGC's Forward P/E has been as high as 19 and as low as 10.88, with a median of 13.74.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. KGC has a P/S ratio of 2.53. This compares to its industry's average P/S of 3.3.
Finally, investors will want to recognize that KGC has a P/CF ratio of 7.74. 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. KGC's current P/CF looks attractive when compared to its industry's average P/CF of 13.10. Within the past 12 months, KGC's P/CF has been as high as 7.74 and as low as 4.18, with a median of 5.44.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Kinross Gold is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KGC feels like a great value stock at the moment.
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Should Value Investors Buy Kinross Gold (KGC) 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 Kinross Gold (KGC - Free Report) . KGC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 16.49, while its industry has an average P/E of 16.57. Over the last 12 months, KGC's Forward P/E has been as high as 19 and as low as 10.88, with a median of 13.74.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. KGC has a P/S ratio of 2.53. This compares to its industry's average P/S of 3.3.
Finally, investors will want to recognize that KGC has a P/CF ratio of 7.74. 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. KGC's current P/CF looks attractive when compared to its industry's average P/CF of 13.10. Within the past 12 months, KGC's P/CF has been as high as 7.74 and as low as 4.18, with a median of 5.44.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Kinross Gold is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KGC feels like a great value stock at the moment.