We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AEM vs. AGI: Which Stock Should Value Investors Buy Now?
Read MoreHide Full Article
Investors with an interest in Mining - Gold stocks have likely encountered both Agnico Eagle Mines (AEM - Free Report) and Alamos Gold (AGI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Agnico Eagle Mines and Alamos Gold are both sporting a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
AEM currently has a forward P/E ratio of 20.58, while AGI has a forward P/E of 23.33. We also note that AEM has a PEG ratio of 0.73. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AGI currently has a PEG ratio of 0.75.
Another notable valuation metric for AEM is its P/B ratio of 1.88. 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. For comparison, AGI has a P/B of 2.36.
These are just a few of the metrics contributing to AEM's Value grade of B and AGI's Value grade of C.
Both AEM and AGI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that AEM is the superior value option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
AEM vs. AGI: Which Stock Should Value Investors Buy Now?
Investors with an interest in Mining - Gold stocks have likely encountered both Agnico Eagle Mines (AEM - Free Report) and Alamos Gold (AGI - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Agnico Eagle Mines and Alamos Gold are both sporting a Zacks Rank of # 2 (Buy) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
AEM currently has a forward P/E ratio of 20.58, while AGI has a forward P/E of 23.33. We also note that AEM has a PEG ratio of 0.73. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AGI currently has a PEG ratio of 0.75.
Another notable valuation metric for AEM is its P/B ratio of 1.88. 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. For comparison, AGI has a P/B of 2.36.
These are just a few of the metrics contributing to AEM's Value grade of B and AGI's Value grade of C.
Both AEM and AGI are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that AEM is the superior value option right now.