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Are Investors Undervaluing B2Gold Corp (BTG) Right Now?

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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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is B2Gold Corp (BTG - Free Report) . BTG is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 6.15 right now. For comparison, its industry sports an average P/E of 12.79. BTG's Forward P/E has been as high as 11.45 and as low as 5.54, with a median of 6.98, all within the past year.

Investors should also note that BTG holds a PEG ratio of 0.26. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BTG's industry has an average PEG of 0.44 right now. Over the past 52 weeks, BTG's PEG has been as high as 1.60 and as low as 0.22, with a median of 0.29.

We should also highlight that BTG has a P/B ratio of 1.47. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. BTG's current P/B looks attractive when compared to its industry's average P/B of 1.86. Over the past 12 months, BTG's P/B has been as high as 1.57 and as low as 0.84, with a median of 1.19.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BTG has a P/S ratio of 2.35. This compares to its industry's average P/S of 3.56.

Kinross Gold (KGC - Free Report) may be another strong Mining - Gold stock to add to your shortlist. KGC is a Zacks Rank of #1 (Strong Buy) stock with a Value grade of A.

Kinross Gold is trading at a forward earnings multiple of 12.39 at the moment, with a PEG ratio of 0.59. This compares to its industry's average P/E of 12.79 and average PEG ratio of 0.44.

KGC's price-to-earnings ratio has been as high as 17.79 and as low as 10.27, with a median of 13.35, while its PEG ratio has been as high as 0.98 and as low as 0.32, with a median of 0.58, all within the past year.

Kinross Gold sports a P/B ratio of 2.74 as well; this compares to its industry's price-to-book ratio of 1.86. In the past 52 weeks, KGC's P/B has been as high as 2.74, as low as 1.55, with a median of 1.90.

Value investors will likely look at more than just these metrics, but the above data helps show that B2Gold Corp and Kinross Gold are likely undervalued currently. And when considering the strength of its earnings outlook, BTG and KGC sticks out as one of the market's strongest value stocks.


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