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HBM vs. WPM: Which Stock Is the Better Value Option?
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Investors interested in stocks from the Mining - Miscellaneous sector have probably already heard of HudBay Minerals (HBM - Free Report) and Wheaton Precious Metals Corp. (WPM - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
HudBay Minerals and Wheaton Precious Metals Corp. are both sporting a Zacks Rank of #1 (Strong Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
HBM currently has a forward P/E ratio of 14.90, while WPM has a forward P/E of 41.00. We also note that HBM has a PEG ratio of 0.29. 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. WPM currently has a PEG ratio of 2.66.
Another notable valuation metric for HBM is its P/B ratio of 1.49. 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, WPM has a P/B of 5.51.
These are just a few of the metrics contributing to HBM's Value grade of A and WPM's Value grade of F.
Both HBM and WPM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HBM is the superior value option right now.
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HBM vs. WPM: Which Stock Is the Better Value Option?
Investors interested in stocks from the Mining - Miscellaneous sector have probably already heard of HudBay Minerals (HBM - Free Report) and Wheaton Precious Metals Corp. (WPM - 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.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
HudBay Minerals and Wheaton Precious Metals Corp. are both sporting a Zacks Rank of #1 (Strong Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. However, value investors will care about much more than just this.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Style Score Value grade factors in a variety of key fundamental metrics, including the popular P/E ratio, P/S ratio, earnings yield, cash flow per share, and a number of other key stats that are commonly used by value investors.
HBM currently has a forward P/E ratio of 14.90, while WPM has a forward P/E of 41.00. We also note that HBM has a PEG ratio of 0.29. 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. WPM currently has a PEG ratio of 2.66.
Another notable valuation metric for HBM is its P/B ratio of 1.49. 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, WPM has a P/B of 5.51.
These are just a few of the metrics contributing to HBM's Value grade of A and WPM's Value grade of F.
Both HBM and WPM are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that HBM is the superior value option right now.