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 Amerigo Resources (ARREF) Stock Undervalued 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 Amerigo Resources (ARREF - Free Report) . ARREF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.70, which compares to its industry's average of 11.47. Over the past year, ARREF's Forward P/E has been as high as 9.86 and as low as 1.22, with a median of 7.91.
Investors should also note that ARREF holds a PEG ratio of 0.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ARREF's PEG compares to its industry's average PEG of 0.52. Over the past 52 weeks, ARREF's PEG has been as high as 0.39 and as low as 0.05, with a median of 0.32.
Investors should also recognize that ARREF has a P/B ratio of 1.68. 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. This stock's P/B looks attractive against its industry's average P/B of 2.35. Over the past 12 months, ARREF's P/B has been as high as 1.93 and as low as 1.19, with a median of 1.44.
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. ARREF has a P/S ratio of 1.18. This compares to its industry's average P/S of 2.05.
Finally, investors will want to recognize that ARREF has a P/CF ratio of 3.82. 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 stock's P/CF looks attractive against its industry's average P/CF of 6.83. Over the past 52 weeks, ARREF's P/CF has been as high as 5.82 and as low as 2.89, with a median of 3.66.
Centrus Energy (LEU - Free Report) may be another strong Mining - Non Ferrous stock to add to your shortlist. LEU is a # 2 (Buy) stock with a Value grade of A.
Centrus Energy sports a P/B ratio of -2.51 as well; this compares to its industry's price-to-book ratio of 2.35. In the past 52 weeks, LEU's P/B has been as high as -1.04, as low as -5.34, with a median of -3.05.
Value investors will likely look at more than just these metrics, but the above data helps show that Amerigo Resources and Centrus Energy are likely undervalued currently. And when considering the strength of its earnings outlook, ARREF and LEU 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:
Image: Bigstock
Is Amerigo Resources (ARREF) Stock Undervalued Right Now?
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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 Amerigo Resources (ARREF - Free Report) . ARREF is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.70, which compares to its industry's average of 11.47. Over the past year, ARREF's Forward P/E has been as high as 9.86 and as low as 1.22, with a median of 7.91.
Investors should also note that ARREF holds a PEG ratio of 0.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. ARREF's PEG compares to its industry's average PEG of 0.52. Over the past 52 weeks, ARREF's PEG has been as high as 0.39 and as low as 0.05, with a median of 0.32.
Investors should also recognize that ARREF has a P/B ratio of 1.68. 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. This stock's P/B looks attractive against its industry's average P/B of 2.35. Over the past 12 months, ARREF's P/B has been as high as 1.93 and as low as 1.19, with a median of 1.44.
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. ARREF has a P/S ratio of 1.18. This compares to its industry's average P/S of 2.05.
Finally, investors will want to recognize that ARREF has a P/CF ratio of 3.82. 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 stock's P/CF looks attractive against its industry's average P/CF of 6.83. Over the past 52 weeks, ARREF's P/CF has been as high as 5.82 and as low as 2.89, with a median of 3.66.
Centrus Energy (LEU - Free Report) may be another strong Mining - Non Ferrous stock to add to your shortlist. LEU is a # 2 (Buy) stock with a Value grade of A.
Centrus Energy sports a P/B ratio of -2.51 as well; this compares to its industry's price-to-book ratio of 2.35. In the past 52 weeks, LEU's P/B has been as high as -1.04, as low as -5.34, with a median of -3.05.
Value investors will likely look at more than just these metrics, but the above data helps show that Amerigo Resources and Centrus Energy are likely undervalued currently. And when considering the strength of its earnings outlook, ARREF and LEU sticks out as one of the market's strongest value stocks.