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ARREF or SCCO: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Mining - Non Ferrous sector might want to consider either Amerigo Resources (ARREF - Free Report) or Southern Copper (SCCO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Amerigo Resources has a Zacks Rank of #1 (Strong Buy), while Southern Copper has a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ARREF has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
ARREF currently has a forward P/E ratio of 6.85, while SCCO has a forward P/E of 24.27. We also note that ARREF has a PEG ratio of 0.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SCCO currently has a PEG ratio of 1.07.
Another notable valuation metric for ARREF is its P/B ratio of 1.82. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, SCCO has a P/B of 10.71.
These are just a few of the metrics contributing to ARREF's Value grade of A and SCCO's Value grade of C.
ARREF sticks out from SCCO in both our Zacks Rank and Style Scores models, so value investors will likely feel that ARREF is the better option right now.
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ARREF or SCCO: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Mining - Non Ferrous sector might want to consider either Amerigo Resources (ARREF - Free Report) or Southern Copper (SCCO - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Currently, Amerigo Resources has a Zacks Rank of #1 (Strong Buy), while Southern Copper has a Zacks Rank of #2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that ARREF has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
ARREF currently has a forward P/E ratio of 6.85, while SCCO has a forward P/E of 24.27. We also note that ARREF has a PEG ratio of 0.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SCCO currently has a PEG ratio of 1.07.
Another notable valuation metric for ARREF is its P/B ratio of 1.82. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, SCCO has a P/B of 10.71.
These are just a few of the metrics contributing to ARREF's Value grade of A and SCCO's Value grade of C.
ARREF sticks out from SCCO in both our Zacks Rank and Style Scores models, so value investors will likely feel that ARREF is the better option right now.