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NGD or AEM: Which Is the Better Value Stock Right Now?
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Investors interested in Mining - Gold stocks are likely familiar with New Gold (NGD - Free Report) and Agnico Eagle Mines (AEM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
New Gold and Agnico Eagle Mines are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that NGD's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
NGD currently has a forward P/E ratio of 22.83, while AEM has a forward P/E of 24.06. We also note that NGD has a PEG ratio of 0.41. 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. AEM currently has a PEG ratio of 24.06.
Another notable valuation metric for NGD is its P/B ratio of 1.06. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, AEM has a P/B of 1.27.
These are just a few of the metrics contributing to NGD's Value grade of A and AEM's Value grade of D.
NGD is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that NGD is likely the superior value option right now.
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NGD or AEM: Which Is the Better Value Stock Right Now?
Investors interested in Mining - Gold stocks are likely familiar with New Gold (NGD - Free Report) and Agnico Eagle Mines (AEM - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.
Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
New Gold and Agnico Eagle Mines are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This means that NGD's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
NGD currently has a forward P/E ratio of 22.83, while AEM has a forward P/E of 24.06. We also note that NGD has a PEG ratio of 0.41. 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. AEM currently has a PEG ratio of 24.06.
Another notable valuation metric for NGD is its P/B ratio of 1.06. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, AEM has a P/B of 1.27.
These are just a few of the metrics contributing to NGD's Value grade of A and AEM's Value grade of D.
NGD is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that NGD is likely the superior value option right now.