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.
GOLD vs. TFPM: Which Stock Is the Better Value Option?
Read MoreHide Full Article
Investors interested in Mining - Gold stocks are likely familiar with Barrick Gold (GOLD - Free Report) and Triple Flag Precious Metals (TFPM - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Barrick Gold has a Zacks Rank of #2 (Buy), while Triple Flag Precious Metals has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GOLD is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
GOLD currently has a forward P/E ratio of 17.35, while TFPM has a forward P/E of 37.32. We also note that GOLD has a PEG ratio of 1.41. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TFPM currently has a PEG ratio of 5.36.
Another notable valuation metric for GOLD is its P/B ratio of 0.85. 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. By comparison, TFPM has a P/B of 1.46.
These metrics, and several others, help GOLD earn a Value grade of B, while TFPM has been given a Value grade of F.
GOLD sticks out from TFPM in both our Zacks Rank and Style Scores models, so value investors will likely feel that GOLD is the better option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
GOLD vs. TFPM: Which Stock Is the Better Value Option?
Investors interested in Mining - Gold stocks are likely familiar with Barrick Gold (GOLD - Free Report) and Triple Flag Precious Metals (TFPM - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Currently, Barrick Gold has a Zacks Rank of #2 (Buy), while Triple Flag Precious Metals has a Zacks Rank of #4 (Sell). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that GOLD is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
GOLD currently has a forward P/E ratio of 17.35, while TFPM has a forward P/E of 37.32. We also note that GOLD has a PEG ratio of 1.41. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TFPM currently has a PEG ratio of 5.36.
Another notable valuation metric for GOLD is its P/B ratio of 0.85. 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. By comparison, TFPM has a P/B of 1.46.
These metrics, and several others, help GOLD earn a Value grade of B, while TFPM has been given a Value grade of F.
GOLD sticks out from TFPM in both our Zacks Rank and Style Scores models, so value investors will likely feel that GOLD is the better option right now.