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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Iamgold (IAG - Free Report) is a stock many investors are watching right now. IAG is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 13.82 right now. For comparison, its industry sports an average P/E of 16.08. Over the past 52 weeks, IAG's Forward P/E has been as high as 140.56 and as low as 13.82, with a median of 21.27.
Investors will also notice that IAG has a PEG ratio of 0.34. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. IAG's industry currently sports an average PEG of 0.46. Over the last 12 months, IAG's PEG has been as high as 6.52 and as low as 0.34, with a median of 0.54.
We should also highlight that IAG has a P/B ratio of 0.96. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.31. Within the past 52 weeks, IAG's P/B has been as high as 0.97 and as low as 0.43, with a median of 0.55.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. IAG has a P/S ratio of 1.81. This compares to its industry's average P/S of 3.51.
Finally, we should also recognize that IAG has a P/CF ratio of 5.88. 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. IAG's current P/CF looks attractive when compared to its industry's average P/CF of 12.32. Over the past 52 weeks, IAG's P/CF has been as high as 7.11 and as low as 3.42, with a median of 4.71.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Iamgold is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IAG feels like a great value stock at the moment.
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Should Value Investors Buy Iamgold (IAG) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Iamgold (IAG - Free Report) is a stock many investors are watching right now. IAG is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with P/E ratio of 13.82 right now. For comparison, its industry sports an average P/E of 16.08. Over the past 52 weeks, IAG's Forward P/E has been as high as 140.56 and as low as 13.82, with a median of 21.27.
Investors will also notice that IAG has a PEG ratio of 0.34. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. IAG's industry currently sports an average PEG of 0.46. Over the last 12 months, IAG's PEG has been as high as 6.52 and as low as 0.34, with a median of 0.54.
We should also highlight that IAG has a P/B ratio of 0.96. 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. This company's current P/B looks solid when compared to its industry's average P/B of 1.31. Within the past 52 weeks, IAG's P/B has been as high as 0.97 and as low as 0.43, with a median of 0.55.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. IAG has a P/S ratio of 1.81. This compares to its industry's average P/S of 3.51.
Finally, we should also recognize that IAG has a P/CF ratio of 5.88. 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. IAG's current P/CF looks attractive when compared to its industry's average P/CF of 12.32. Over the past 52 weeks, IAG's P/CF has been as high as 7.11 and as low as 3.42, with a median of 4.71.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Iamgold is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, IAG feels like a great value stock at the moment.