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Are Investors Undervaluing Amerigo Resources (ARREF) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

Amerigo Resources (ARREF - Free Report) is a stock many investors are watching right now. ARREF is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value.

We should also highlight that ARREF has a P/B ratio of 1.42. Investors use the P/B ratio to look at a stock's market value versus 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 1.48. Over the past 12 months, ARREF's P/B has been as high as 1.53 and as low as 0.93, with a median of 1.22.

Finally, we should also recognize that ARREF has a P/CF ratio of 5.71. 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 7.11. Over the past year, ARREF's P/CF has been as high as 6.21 and as low as 3.35, with a median of 5.34.

Value investors will likely look at more than just these metrics, but the above data helps show that Amerigo Resources is likely undervalued currently. And when considering the strength of its earnings outlook, ARREF sticks out at as one of the market's strongest value stocks.




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