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AUY vs. AEM: Which Stock Is the Better Value Option?
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Investors interested in Mining - Gold stocks are likely familiar with Yamana Gold 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both Yamana Gold and Agnico Eagle Mines are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is only part of the picture for value investors.
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 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.
AUY currently has a forward P/E ratio of 24, while AEM has a forward P/E of 26.48. We also note that AUY has a PEG ratio of 2.71. 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. AEM currently has a PEG ratio of 26.48.
Another notable valuation metric for AUY is its P/B ratio of 1.10. 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 1.56.
Based on these metrics and many more, AUY holds a Value grade of B, while AEM has a Value grade of C.
Both AUY and AEM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that AUY is the superior value option right now.
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AUY vs. AEM: Which Stock Is the Better Value Option?
Investors interested in Mining - Gold stocks are likely familiar with Yamana Gold 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.
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 Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Currently, both Yamana Gold and Agnico Eagle Mines are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is only part of the picture for value investors.
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 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.
AUY currently has a forward P/E ratio of 24, while AEM has a forward P/E of 26.48. We also note that AUY has a PEG ratio of 2.71. 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. AEM currently has a PEG ratio of 26.48.
Another notable valuation metric for AUY is its P/B ratio of 1.10. 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 1.56.
Based on these metrics and many more, AUY holds a Value grade of B, while AEM has a Value grade of C.
Both AUY and AEM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that AUY is the superior value option right now.