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Should Value Investors Buy Dundee Precious Metals (DPMLF) 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, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Dundee Precious Metals (DPMLF - Free Report) is a stock many investors are watching right now. DPMLF is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.18, which compares to its industry's average of 12.45. Over the last 12 months, DPMLF's Forward P/E has been as high as 9.60 and as low as 5.80, with a median of 8.12.

Finally, investors will want to recognize that DPMLF has a P/CF ratio of 8.82. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. DPMLF's P/CF compares to its industry's average P/CF of 10.30. DPMLF's P/CF has been as high as 8.95 and as low as 4.93, with a median of 6.44, all within the past year.

Investors could also keep in mind Iamgold (IAG - Free Report) , another Mining - Gold stock with a Zacks Rank of #1 (Strong Buy) and Value grade of A.

Iamgold is currently trading with a Forward P/E ratio of 7.87 while its PEG ratio sits at 0.31. Both of the company's metrics compare favorably to its industry's average P/E of 12.45 and average PEG ratio of 0.42.

IAG's Forward P/E has been as high as 11.58 and as low as 6.48, with a median of 8.51. During the same time period, its PEG ratio has been as high as 1.23, as low as 0.28, with a median of 0.33.

Furthermore, Iamgold holds a P/B ratio of 1.19 and its industry's price-to-book ratio is 1.78. IAG's P/B has been as high as 1.34, as low as 0.76, with a median of 1.02 over the past 12 months.

These are just a handful of the figures considered in Dundee Precious Metals and Iamgold's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DPMLF and IAG is an impressive value stock right now.


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