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Is Barrick Gold (GOLD) Stock Undervalued Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Barrick Gold (GOLD - Free Report) . GOLD is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.44 right now. For comparison, its industry sports an average P/E of 14.45. Over the last 12 months, GOLD's Forward P/E has been as high as 22.29 and as low as 12.44, with a median of 15.22.
Investors will also notice that GOLD has a PEG ratio of 0.38. 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. GOLD's industry currently sports an average PEG of 0.49. Over the last 12 months, GOLD's PEG has been as high as 8.29 and as low as 0.35, with a median of 1.16.
Investors should also recognize that GOLD has a P/B ratio of 0.94. 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. GOLD's current P/B looks attractive when compared to its industry's average P/B of 1.32. GOLD's P/B has been as high as 1.05 and as low as 0.77, with a median of 0.91, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GOLD has a P/S ratio of 2.65. This compares to its industry's average P/S of 3.
Finally, investors should note that GOLD has a P/CF ratio of 8.59. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.03. Over the past year, GOLD's P/CF has been as high as 15.14 and as low as 7.45, with a median of 9.02.
Value investors will likely look at more than just these metrics, but the above data helps show that Barrick Gold is likely undervalued currently. And when considering the strength of its earnings outlook, GOLD sticks out at as one of the market's strongest value stocks.
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Is Barrick Gold (GOLD) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company value investors might notice is Barrick Gold (GOLD - Free Report) . GOLD is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 12.44 right now. For comparison, its industry sports an average P/E of 14.45. Over the last 12 months, GOLD's Forward P/E has been as high as 22.29 and as low as 12.44, with a median of 15.22.
Investors will also notice that GOLD has a PEG ratio of 0.38. 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. GOLD's industry currently sports an average PEG of 0.49. Over the last 12 months, GOLD's PEG has been as high as 8.29 and as low as 0.35, with a median of 1.16.
Investors should also recognize that GOLD has a P/B ratio of 0.94. 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. GOLD's current P/B looks attractive when compared to its industry's average P/B of 1.32. GOLD's P/B has been as high as 1.05 and as low as 0.77, with a median of 0.91, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. GOLD has a P/S ratio of 2.65. This compares to its industry's average P/S of 3.
Finally, investors should note that GOLD has a P/CF ratio of 8.59. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.03. Over the past year, GOLD's P/CF has been as high as 15.14 and as low as 7.45, with a median of 9.02.
Value investors will likely look at more than just these metrics, but the above data helps show that Barrick Gold is likely undervalued currently. And when considering the strength of its earnings outlook, GOLD sticks out at as one of the market's strongest value stocks.