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IAG or CGAU: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Mining - Gold sector have probably already heard of Iamgold (IAG - Free Report) and Centerra Gold Inc. (CGAU - 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.
Iamgold and Centerra Gold Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that IAG is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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 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.
IAG currently has a forward P/E ratio of 140.56, while CGAU has a forward P/E of 1,116. We also note that IAG has a PEG ratio of 3.70. 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. CGAU currently has a PEG ratio of 84.74.
Another notable valuation metric for IAG is its P/B ratio of 0.53. 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, CGAU has a P/B of 0.70.
These are just a few of the metrics contributing to IAG's Value grade of B and CGAU's Value grade of D.
IAG has seen stronger estimate revision activity and sports more attractive valuation metrics than CGAU, so it seems like value investors will conclude that IAG is the superior option right now.
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IAG or CGAU: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Mining - Gold sector have probably already heard of Iamgold (IAG - Free Report) and Centerra Gold Inc. (CGAU - 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.
Iamgold and Centerra Gold Inc. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that IAG is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this.
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 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.
IAG currently has a forward P/E ratio of 140.56, while CGAU has a forward P/E of 1,116. We also note that IAG has a PEG ratio of 3.70. 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. CGAU currently has a PEG ratio of 84.74.
Another notable valuation metric for IAG is its P/B ratio of 0.53. 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, CGAU has a P/B of 0.70.
These are just a few of the metrics contributing to IAG's Value grade of B and CGAU's Value grade of D.
IAG has seen stronger estimate revision activity and sports more attractive valuation metrics than CGAU, so it seems like value investors will conclude that IAG is the superior option right now.