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Are Investors Undervaluing Amerigo Resources (ARREF) Right Now?
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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 to watch right now is Amerigo Resources (ARREF - Free Report) . ARREF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We should also highlight that ARREF has a P/B ratio of 1.21. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.69. Over the past year, ARREF's P/B has been as high as 1.67 and as low as 0.93, with a median of 1.22.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ARREF has a P/S ratio of 0.95. This compares to its industry's average P/S of 1.3.
Finally, our model also underscores that ARREF has a P/CF ratio of 5.67. 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. ARREF's P/CF compares to its industry's average P/CF of 6.16. ARREF's P/CF has been as high as 6.47 and as low as 3.35, with a median of 5.52, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Amerigo Resources is likely undervalued currently. And when considering the strength of its earnings outlook, ARREF sticks out at as one of the market's strongest value stocks.
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Are Investors Undervaluing Amerigo Resources (ARREF) Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 to watch right now is Amerigo Resources (ARREF - Free Report) . ARREF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We should also highlight that ARREF has a P/B ratio of 1.21. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.69. Over the past year, ARREF's P/B has been as high as 1.67 and as low as 0.93, with a median of 1.22.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ARREF has a P/S ratio of 0.95. This compares to its industry's average P/S of 1.3.
Finally, our model also underscores that ARREF has a P/CF ratio of 5.67. 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. ARREF's P/CF compares to its industry's average P/CF of 6.16. ARREF's P/CF has been as high as 6.47 and as low as 3.35, with a median of 5.52, all within the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Amerigo Resources is likely undervalued currently. And when considering the strength of its earnings outlook, ARREF sticks out at as one of the market's strongest value stocks.