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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
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.
Kinross Gold (KGC - Free Report) is a stock many investors are watching right now. KGC 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 14.43 right now. For comparison, its industry sports an average P/E of 15.90. KGC's Forward P/E has been as high as 19 and as low as 10.88, with a median of 14.05, all within the past year.
Investors will also notice that KGC has a PEG ratio of 0.49. 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. KGC's industry has an average PEG of 0.53 right now. Over the last 12 months, KGC's PEG has been as high as 2.13 and as low as 0.41, with a median of 0.91.
We should also highlight that KGC has a P/B ratio of 1.79. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. KGC's current P/B looks attractive when compared to its industry's average P/B of 3.45. Over the past 12 months, KGC's P/B has been as high as 1.79 and as low as 0.87, with a median of 1.15.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. KGC has a P/S ratio of 2.53. This compares to its industry's average P/S of 3.32.
Finally, investors should note that KGC has a P/CF ratio of 7.31. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.43. KGC's P/CF has been as high as 7.31 and as low as 4.18, with a median of 5.48, all within the past year.
These are only a few of the key metrics included in Kinross Gold's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, KGC looks like an impressive 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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.
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.
Kinross Gold (KGC - Free Report) is a stock many investors are watching right now. KGC 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 14.43 right now. For comparison, its industry sports an average P/E of 15.90. KGC's Forward P/E has been as high as 19 and as low as 10.88, with a median of 14.05, all within the past year.
Investors will also notice that KGC has a PEG ratio of 0.49. 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. KGC's industry has an average PEG of 0.53 right now. Over the last 12 months, KGC's PEG has been as high as 2.13 and as low as 0.41, with a median of 0.91.
We should also highlight that KGC has a P/B ratio of 1.79. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. KGC's current P/B looks attractive when compared to its industry's average P/B of 3.45. Over the past 12 months, KGC's P/B has been as high as 1.79 and as low as 0.87, with a median of 1.15.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. KGC has a P/S ratio of 2.53. This compares to its industry's average P/S of 3.32.
Finally, investors should note that KGC has a P/CF ratio of 7.31. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.43. KGC's P/CF has been as high as 7.31 and as low as 4.18, with a median of 5.48, all within the past year.
These are only a few of the key metrics included in Kinross Gold's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, KGC looks like an impressive value stock at the moment.