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Is Kinross Gold (KGC) a Great Value Stock 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 stock to keep an eye on is Kinross Gold (KGC - Free Report) . KGC is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 14.34, which compares to its industry's average of 19.70. Over the last 12 months, KGC's Forward P/E has been as high as 30.49 and as low as 13.98, with a median of 23.77.

Another valuation metric that we should highlight is KGC's P/B ratio of 1.23. 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. KGC's current P/B looks attractive when compared to its industry's average P/B of 1.84. Within the past 52 weeks, KGC's P/B has been as high as 1.44 and as low as 0.66, with a median of 0.93.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. KGC has a P/S ratio of 1.86. This compares to its industry's average P/S of 2.89.

These are just a handful of the figures considered in Kinross Gold's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that KGC is an impressive value stock right now.


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