Back to top

Image: Bigstock

Are Investors Undervaluing Fresnillo (FNLPF) Right Now?

Read MoreHide Full Article

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.

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.

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.

Fresnillo (FNLPF - Free Report) is a stock many investors are watching right now. FNLPF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.65. This compares to its industry's average Forward P/E of 27.13. Over the last 12 months, FNLPF's Forward P/E has been as high as 68.64 and as low as 9.11, with a median of 17.17.

Another notable valuation metric for FNLPF is its P/B ratio of 1.31. 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. FNLPF's current P/B looks attractive when compared to its industry's average P/B of 1.75. FNLPF's P/B has been as high as 1.49 and as low as 1.02, with a median of 1.29, over the past year.

These are only a few of the key metrics included in Fresnillo'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, FNLPF looks like an impressive value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Fresnillo PLC (FNLPF) - free report >>

Published in