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Are Investors Undervaluing Silvercorp Metals (SVM) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 stock to keep an eye on is Silvercorp Metals (SVM - Free Report) . SVM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 10.23, while its industry has an average P/E of 10.87. SVM's Forward P/E has been as high as 30.26 and as low as 7.12, with a median of 10.91, all within the past year.

Finally, our model also underscores that SVM has a P/CF ratio of 7.23. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 20.18. SVM's P/CF has been as high as 14.86 and as low as 6.28, with a median of 9.73, all within the past year.

These are only a few of the key metrics included in Silvercorp Metals's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, SVM looks like an impressive value stock at the moment.


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