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.
Is Kinross Gold (KGC) a Great Value Stock 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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One company to watch right now is Kinross Gold (KGC - Free Report) . KGC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.03 right now. For comparison, its industry sports an average P/E of 15. Over the past 52 weeks, KGC's Forward P/E has been as high as 19 and as low as 10.88, with a median of 14.06.
Investors will also notice that KGC has a PEG ratio of 0.44. 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. KGC's industry currently sports an average PEG of 0.45. 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 0.89.
We should also highlight that KGC has a P/B ratio of 1.66. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.33. 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 1.18.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. KGC has a P/S ratio of 2.27. This compares to its industry's average P/S of 3.44.
Finally, investors will want to recognize that KGC has a P/CF ratio of 6.76. 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. KGC's P/CF compares to its industry's average P/CF of 16.89. Within the past 12 months, KGC's P/CF has been as high as 7.31 and as low as 4.18, with a median of 5.54.
Value investors will likely look at more than just these metrics, but the above data helps show that Kinross Gold is likely undervalued currently. And when considering the strength of its earnings outlook, KGC sticks out at as one of the market's strongest value stocks.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Kinross Gold (KGC) a Great Value Stock Right Now?
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 use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
One company to watch right now is Kinross Gold (KGC - Free Report) . KGC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock is trading with P/E ratio of 13.03 right now. For comparison, its industry sports an average P/E of 15. Over the past 52 weeks, KGC's Forward P/E has been as high as 19 and as low as 10.88, with a median of 14.06.
Investors will also notice that KGC has a PEG ratio of 0.44. 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. KGC's industry currently sports an average PEG of 0.45. 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 0.89.
We should also highlight that KGC has a P/B ratio of 1.66. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.33. 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 1.18.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. KGC has a P/S ratio of 2.27. This compares to its industry's average P/S of 3.44.
Finally, investors will want to recognize that KGC has a P/CF ratio of 6.76. 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. KGC's P/CF compares to its industry's average P/CF of 16.89. Within the past 12 months, KGC's P/CF has been as high as 7.31 and as low as 4.18, with a median of 5.54.
Value investors will likely look at more than just these metrics, but the above data helps show that Kinross Gold is likely undervalued currently. And when considering the strength of its earnings outlook, KGC sticks out at as one of the market's strongest value stocks.