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GLNCY vs. IVPAF: Which Stock Should Value Investors Buy Now?
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Investors looking for stocks in the Mining - Miscellaneous sector might want to consider either Glencore PLC (GLNCY - Free Report) or Ivanhoe Mines Ltd. (IVPAF - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Glencore PLC and Ivanhoe Mines Ltd. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that GLNCY likely has seen a stronger improvement to its earnings outlook than IVPAF has recently. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
GLNCY currently has a forward P/E ratio of 20.78, while IVPAF has a forward P/E of 35.96. We also note that GLNCY has a PEG ratio of 1.07. 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. IVPAF currently has a PEG ratio of 1.12.
Another notable valuation metric for GLNCY is its P/B ratio of 2.53. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, IVPAF has a P/B of 3.5.
These metrics, and several others, help GLNCY earn a Value grade of A, while IVPAF has been given a Value grade of F.
GLNCY stands above IVPAF thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GLNCY is the superior value option right now.
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GLNCY vs. IVPAF: Which Stock Should Value Investors Buy Now?
Investors looking for stocks in the Mining - Miscellaneous sector might want to consider either Glencore PLC (GLNCY - Free Report) or Ivanhoe Mines Ltd. (IVPAF - Free Report) . But which of these two companies is the best option for those looking for undervalued stocks? Let's 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 Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.
Glencore PLC and Ivanhoe Mines Ltd. are sporting Zacks Ranks of #2 (Buy) and #3 (Hold), respectively, right now. Investors should feel comfortable knowing that GLNCY likely has seen a stronger improvement to its earnings outlook than IVPAF has recently. But this is just one factor that value investors are interested in.
Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
GLNCY currently has a forward P/E ratio of 20.78, while IVPAF has a forward P/E of 35.96. We also note that GLNCY has a PEG ratio of 1.07. 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. IVPAF currently has a PEG ratio of 1.12.
Another notable valuation metric for GLNCY is its P/B ratio of 2.53. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, IVPAF has a P/B of 3.5.
These metrics, and several others, help GLNCY earn a Value grade of A, while IVPAF has been given a Value grade of F.
GLNCY stands above IVPAF thanks to its solid earnings outlook, and based on these valuation figures, we also feel that GLNCY is the superior value option right now.