Back to top

Image: Bigstock

Is Kinross Gold (KGC) a Great Value Stock Right Now?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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.

One company value investors might notice is Kinross Gold (KGC - Free Report) . KGC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 15.29, which compares to its industry's average of 15.77. KGC's Forward P/E has been as high as 17.79 and as low as 10.27, with a median of 13.75, all within the past year.

Finally, investors will want to recognize that KGC has a P/CF ratio of 8.58. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 11.30. Within the past 12 months, KGC's P/CF has been as high as 8.98 and as low as 5.36, with a median of 6.64.

New Gold (NGD - Free Report) may be another strong Mining - Gold stock to add to your shortlist. NGD is a # 2 (Buy) stock with a Value grade of A.

New Gold is trading at a forward earnings multiple of 7.64 at the moment, with a PEG ratio of 0.25. This compares to its industry's average P/E of 15.77 and average PEG ratio of 0.56.

NGD's Forward P/E has been as high as 24.11 and as low as 7.64, with a median of 11.49. During the same time period, its PEG ratio has been as high as 0.75, as low as 0.22, with a median of 0.45.

Furthermore, New Gold holds a P/B ratio of 2.58 and its industry's price-to-book ratio is 2.07. NGD's P/B has been as high as 2.81, as low as 1.18, with a median of 2.01 over the past 12 months.

Value investors will likely look at more than just these metrics, but the above data helps show that Kinross Gold and New Gold are likely undervalued currently. And when considering the strength of its earnings outlook, KGC and NGD sticks out 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:


Kinross Gold Corporation (KGC) - free report >>

New Gold Inc. (NGD) - free report >>

Published in