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Are Investors Undervaluing Gold Resource (GORO) Right Now?
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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, 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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Gold Resource (GORO - Free Report) . GORO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also recognize that GORO has a P/B ratio of 0.68. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. GORO's current P/B looks attractive when compared to its industry's average P/B of 1.56. Over the past 12 months, GORO's P/B has been as high as 1.49 and as low as 0.66, with a median of 1.21.
Finally, our model also underscores that GORO has a P/CF ratio of 5.15. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.61. Over the past 52 weeks, GORO's P/CF has been as high as 7 and as low as 3.24, with a median of 5.41.
Investors could also keep in mind New Gold (NGD - Free Report) , an Mining - Gold stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of New Gold are currently trading at a forward earnings multiple of 14.47 and a PEG ratio of 2.89 compared to its industry's P/E and PEG ratios of 19.45 and 2.86, respectively.
NGD's Forward P/E has been as high as 33.27 and as low as -15.29, with a median of 12.70. During the same time period, its PEG ratio has been as high as 6.65, as low as -3.06, with a median of 2.54.
New Gold also has a P/B ratio of 1.01 compared to its industry's price-to-book ratio of 1.56. Over the past year, its P/B ratio has been as high as 1.14, as low as 0.42, with a median of 0.70.
Value investors will likely look at more than just these metrics, but the above data helps show that Gold Resource and New Gold are likely undervalued currently. And when considering the strength of its earnings outlook, GORO and NGD sticks out as one of the market's strongest value stocks.
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Are Investors Undervaluing Gold Resource (GORO) 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, 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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Gold Resource (GORO - Free Report) . GORO is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
Investors should also recognize that GORO has a P/B ratio of 0.68. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. GORO's current P/B looks attractive when compared to its industry's average P/B of 1.56. Over the past 12 months, GORO's P/B has been as high as 1.49 and as low as 0.66, with a median of 1.21.
Finally, our model also underscores that GORO has a P/CF ratio of 5.15. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 14.61. Over the past 52 weeks, GORO's P/CF has been as high as 7 and as low as 3.24, with a median of 5.41.
Investors could also keep in mind New Gold (NGD - Free Report) , an Mining - Gold stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Shares of New Gold are currently trading at a forward earnings multiple of 14.47 and a PEG ratio of 2.89 compared to its industry's P/E and PEG ratios of 19.45 and 2.86, respectively.
NGD's Forward P/E has been as high as 33.27 and as low as -15.29, with a median of 12.70. During the same time period, its PEG ratio has been as high as 6.65, as low as -3.06, with a median of 2.54.
New Gold also has a P/B ratio of 1.01 compared to its industry's price-to-book ratio of 1.56. Over the past year, its P/B ratio has been as high as 1.14, as low as 0.42, with a median of 0.70.
Value investors will likely look at more than just these metrics, but the above data helps show that Gold Resource and New Gold are likely undervalued currently. And when considering the strength of its earnings outlook, GORO and NGD sticks out as one of the market's strongest value stocks.