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AEM vs. AGI: Which Stock Is the Better Value Option?
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Investors looking for stocks in the Mining - Gold sector might want to consider either Agnico Eagle Mines (AEM - Free Report) or Alamos Gold (AGI - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Agnico Eagle Mines has a Zacks Rank of #2 (Buy), while Alamos Gold has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AEM has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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 22.35, while AGI has a forward P/E of 26.02. We also note that AEM has a PEG ratio of 0.79. 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. AGI currently has a PEG ratio of 0.84.
Another notable valuation metric for AEM is its P/B ratio of 2.04. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, AGI has a P/B of 2.67.
Based on these metrics and many more, AEM holds a Value grade of B, while AGI has a Value grade of C.
AEM has seen stronger estimate revision activity and sports more attractive valuation metrics than AGI, so it seems like value investors will conclude that AEM is the superior option right now.
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AEM vs. AGI: Which Stock Is the Better Value Option?
Investors looking for stocks in the Mining - Gold sector might want to consider either Agnico Eagle Mines (AEM - Free Report) or Alamos Gold (AGI - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Agnico Eagle Mines has a Zacks Rank of #2 (Buy), while Alamos Gold has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that AEM has an improving earnings outlook. But this is just one piece of the puzzle for value investors.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its 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 22.35, while AGI has a forward P/E of 26.02. We also note that AEM has a PEG ratio of 0.79. 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. AGI currently has a PEG ratio of 0.84.
Another notable valuation metric for AEM is its P/B ratio of 2.04. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, AGI has a P/B of 2.67.
Based on these metrics and many more, AEM holds a Value grade of B, while AGI has a Value grade of C.
AEM has seen stronger estimate revision activity and sports more attractive valuation metrics than AGI, so it seems like value investors will conclude that AEM is the superior option right now.