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Should Value Investors Buy Silvercorp Metals (SVM) Stock?

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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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One stock to keep an eye on is Silvercorp Metals (SVM - Free Report) . SVM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 8.88, which compares to its industry's average of 11.44. SVM's Forward P/E has been as high as 30.26 and as low as 7.12, with a median of 10.72, all within the past year.

Finally, we should also recognize that SVM has a P/CF ratio of 8.20. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 20.71. SVM's P/CF has been as high as 14.86 and as low as 6.28, with a median of 9.31, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that Silvercorp Metals is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, SVM feels like a great value stock at the moment.


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