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Are Investors Undervaluing Harmony Gold (HMY) Right Now?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Harmony Gold (HMY - Free Report) . HMY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 8.40, while its industry has an average P/E of 24.35. HMY's Forward P/E has been as high as 43.60 and as low as 5.11, with a median of 7.67, all within the past year.

Investors should also recognize that HMY has a P/B ratio of 1.07. 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 1.97. Within the past 52 weeks, HMY's P/B has been as high as 1.07 and as low as 0.36, with a median of 0.46.

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


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