We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NEM or AEM: Which Is the Better Value Stock Right Now?
Read MoreHide Full Article
Investors looking for stocks in the Mining - Gold sector might want to consider either Newmont Corporation (NEM - Free Report) or Agnico Eagle Mines (AEM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Newmont Corporation is sporting a Zacks Rank of #1 (Strong Buy), while Agnico Eagle Mines has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that NEM has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
NEM currently has a forward P/E ratio of 10.68, while AEM has a forward P/E of 13.01. We also note that NEM has a PEG ratio of 1.75. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AEM currently has a PEG ratio of 3.77.
Another notable valuation metric for NEM is its P/B ratio of 3.22. 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, AEM has a P/B of 3.27.
These are just a few of the metrics contributing to NEM's Value grade of B and AEM's Value grade of C.
NEM has seen stronger estimate revision activity and sports more attractive valuation metrics than AEM, so it seems like value investors will conclude that NEM is the superior option right now.
View the Zacks #1 Rank List
Image: Bigstock
NEM or AEM: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Mining - Gold sector might want to consider either Newmont Corporation (NEM - Free Report) or Agnico Eagle Mines (AEM - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's 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 emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Newmont Corporation is sporting a Zacks Rank of #1 (Strong Buy), while Agnico Eagle Mines has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that NEM has an improving earnings outlook. But this is only part of the picture for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.
NEM currently has a forward P/E ratio of 10.68, while AEM has a forward P/E of 13.01. We also note that NEM has a PEG ratio of 1.75. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. AEM currently has a PEG ratio of 3.77.
Another notable valuation metric for NEM is its P/B ratio of 3.22. 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, AEM has a P/B of 3.27.
These are just a few of the metrics contributing to NEM's Value grade of B and AEM's Value grade of C.
NEM has seen stronger estimate revision activity and sports more attractive valuation metrics than AEM, so it seems like value investors will conclude that NEM is the superior option right now.