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Should Value Investors Buy Fortuna Silver Mines (FSM) Stock?
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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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Fortuna Silver Mines (FSM - Free Report) is a stock many investors are watching right now. FSM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 13.91, while its industry has an average P/E of 23.69. Over the past 52 weeks, FSM's Forward P/E has been as high as 24.46 and as low as 12.79, with a median of 15.78.
Another notable valuation metric for FSM is its P/B ratio of 0.88. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.02. Within the past 52 weeks, FSM's P/B has been as high as 1.64 and as low as 0.85, with a median of 1.37.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FSM has a P/S ratio of 1.85. This compares to its industry's average P/S of 1.96.
Finally, we should also recognize that FSM has a P/CF ratio of 4.84. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 18.93. Within the past 12 months, FSM's P/CF has been as high as 11.08 and as low as 4.66, with a median of 7.29.
These are only a few of the key metrics included in Fortuna Silver Mines's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FSM looks like an impressive value stock at the moment.
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Should Value Investors Buy Fortuna Silver Mines (FSM) Stock?
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.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
Fortuna Silver Mines (FSM - Free Report) is a stock many investors are watching right now. FSM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 13.91, while its industry has an average P/E of 23.69. Over the past 52 weeks, FSM's Forward P/E has been as high as 24.46 and as low as 12.79, with a median of 15.78.
Another notable valuation metric for FSM is its P/B ratio of 0.88. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.02. Within the past 52 weeks, FSM's P/B has been as high as 1.64 and as low as 0.85, with a median of 1.37.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. FSM has a P/S ratio of 1.85. This compares to its industry's average P/S of 1.96.
Finally, we should also recognize that FSM has a P/CF ratio of 4.84. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 18.93. Within the past 12 months, FSM's P/CF has been as high as 11.08 and as low as 4.66, with a median of 7.29.
These are only a few of the key metrics included in Fortuna Silver Mines's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, FSM looks like an impressive value stock at the moment.