We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NGD or TFPM: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors interested in stocks from the Mining - Gold sector have probably already heard of New Gold (NGD - Free Report) and Triple Flag Precious Metals (TFPM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, New Gold is sporting a Zacks Rank of #2 (Buy), while Triple Flag Precious Metals has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that NGD likely has seen a stronger improvement to its earnings outlook than TFPM has recently. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
NGD currently has a forward P/E ratio of 36.80, while TFPM has a forward P/E of 36.93. We also note that NGD has a PEG ratio of 0.98. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TFPM currently has a PEG ratio of 2.43.
Another notable valuation metric for NGD is its P/B ratio of 1.60. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, TFPM has a P/B of 1.79.
Based on these metrics and many more, NGD holds a Value grade of A, while TFPM has a Value grade of F.
NGD has seen stronger estimate revision activity and sports more attractive valuation metrics than TFPM, so it seems like value investors will conclude that NGD is the superior option right now.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
NGD or TFPM: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Mining - Gold sector have probably already heard of New Gold (NGD - Free Report) and Triple Flag Precious Metals (TFPM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? 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 puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Right now, New Gold is sporting a Zacks Rank of #2 (Buy), while Triple Flag Precious Metals has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that NGD likely has seen a stronger improvement to its earnings outlook than TFPM has recently. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their 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.
NGD currently has a forward P/E ratio of 36.80, while TFPM has a forward P/E of 36.93. We also note that NGD has a PEG ratio of 0.98. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TFPM currently has a PEG ratio of 2.43.
Another notable valuation metric for NGD is its P/B ratio of 1.60. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, TFPM has a P/B of 1.79.
Based on these metrics and many more, NGD holds a Value grade of A, while TFPM has a Value grade of F.
NGD has seen stronger estimate revision activity and sports more attractive valuation metrics than TFPM, so it seems like value investors will conclude that NGD is the superior option right now.