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GOLD or TFPM: Which Is the Better Value Stock Right Now?
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Investors with an interest in Mining - Gold stocks have likely encountered both Barrick Gold and Triple Flag Precious Metals (TFPM - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Both Barrick Gold and Triple Flag Precious Metals have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
GOLD currently has a forward P/E ratio of 15.70, while TFPM has a forward P/E of 32.60. We also note that GOLD has a PEG ratio of 0.48. 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. TFPM currently has a PEG ratio of 1.17.
Another notable valuation metric for GOLD is its P/B ratio of 1.09. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, TFPM has a P/B of 2.11.
Based on these metrics and many more, GOLD holds a Value grade of A, while TFPM has a Value grade of D.
Both GOLD and TFPM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GOLD is the superior value option right now.
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GOLD or TFPM: Which Is the Better Value Stock Right Now?
Investors with an interest in Mining - Gold stocks have likely encountered both Barrick Gold and Triple Flag Precious Metals (TFPM - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Both Barrick Gold and Triple Flag Precious Metals have a Zacks Rank of # 2 (Buy) right now. This means that both companies have witnessed positive earnings estimate revisions, so investors should feel comfortable knowing that both of these stocks have an improving earnings outlook. But this is just one factor that value investors are interested in.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks 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.
GOLD currently has a forward P/E ratio of 15.70, while TFPM has a forward P/E of 32.60. We also note that GOLD has a PEG ratio of 0.48. 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. TFPM currently has a PEG ratio of 1.17.
Another notable valuation metric for GOLD is its P/B ratio of 1.09. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, TFPM has a P/B of 2.11.
Based on these metrics and many more, GOLD holds a Value grade of A, while TFPM has a Value grade of D.
Both GOLD and TFPM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that GOLD is the superior value option right now.