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EGO or AGI: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Mining - Gold sector might want to consider either Eldorado Gold Corporation (EGO - Free Report) or Alamos Gold (AGI - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Eldorado Gold Corporation has a Zacks Rank of #2 (Buy), while Alamos Gold has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that EGO likely has seen a stronger improvement to its earnings outlook than AGI has recently. But this is just one piece of the puzzle for value investors.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
EGO currently has a forward P/E ratio of 11.66, while AGI has a forward P/E of 19.36. We also note that EGO has a PEG ratio of 0.34. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AGI currently has a PEG ratio of 0.56.
Another notable valuation metric for EGO is its P/B ratio of 1.06. 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, AGI has a P/B of 3.01.
These are just a few of the metrics contributing to EGO's Value grade of A and AGI's Value grade of C.
EGO is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that EGO is likely the superior value option right now.
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EGO or AGI: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Mining - Gold sector might want to consider either Eldorado Gold Corporation (EGO - Free Report) or Alamos Gold (AGI - 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 proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Currently, Eldorado Gold Corporation has a Zacks Rank of #2 (Buy), while Alamos Gold has a Zacks Rank of #3 (Hold). Investors should feel comfortable knowing that EGO likely has seen a stronger improvement to its earnings outlook than AGI has recently. But this is just one piece of the puzzle for value investors.
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.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
EGO currently has a forward P/E ratio of 11.66, while AGI has a forward P/E of 19.36. We also note that EGO has a PEG ratio of 0.34. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. AGI currently has a PEG ratio of 0.56.
Another notable valuation metric for EGO is its P/B ratio of 1.06. 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, AGI has a P/B of 3.01.
These are just a few of the metrics contributing to EGO's Value grade of A and AGI's Value grade of C.
EGO is currently sporting an improving earnings outlook, which makes it stick out in our Zacks Rank model. And, based on the above valuation metrics, we feel that EGO is likely the superior value option right now.