Back to top

Image: Bigstock

Should Value Investors Buy Silvercorp Metals (SVM) Stock?

Read MoreHide Full Article

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Silvercorp Metals (SVM - Free Report) is a stock many investors are watching right now. SVM is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.66. This compares to its industry's average Forward P/E of 14.86. Over the last 12 months, SVM's Forward P/E has been as high as 18.77 and as low as 7.49, with a median of 11.34.

Finally, investors will want to recognize that SVM has a P/CF ratio of 12.92. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 37.67. SVM's P/CF has been as high as 14.22 and as low as 6.37, with a median of 9.32, all within the past year.

These are just a handful of the figures considered in Silvercorp Metals'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 SVM is an impressive value stock right now.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Silvercorp Metals Inc. (SVM) - free report >>

Published in