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Are Investors Undervaluing Silver Standard Resources (SSRM) Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Silver Standard Resources (SSRM - Free Report) . SSRM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 10.51, while its industry has an average P/E of 12.48. Over the past year, SSRM's Forward P/E has been as high as 51.17 and as low as 9.84, with a median of 16.03.

Investors should also note that SSRM holds a PEG ratio of 0.59. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SSRM's PEG compares to its industry's average PEG of 0.66. Over the last 12 months, SSRM's PEG has been as high as 2.89 and as low as 0.54, with a median of 1.

Value investors will likely look at more than just these metrics, but the above data helps show that Silver Standard Resources is likely undervalued currently. And when considering the strength of its earnings outlook, SSRM sticks out at as one of the market's strongest value stocks.


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