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Is B2Gold (BTG) a Great Value Stock Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

One company to watch right now is B2Gold (BTG - Free Report) . BTG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 11.77 right now. For comparison, its industry sports an average P/E of 22.31. Over the last 12 months, BTG's Forward P/E has been as high as 18.06 and as low as 9.64, with a median of 13.66.

Investors will also notice that BTG has a PEG ratio of 0.52. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. BTG's PEG compares to its industry's average PEG of 1.48. Over the last 12 months, BTG's PEG has been as high as 0.69 and as low as 0.42, with a median of 0.51.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. BTG has a P/S ratio of 3.03. This compares to its industry's average P/S of 3.15.

Finally, our model also underscores that BTG has a P/CF ratio of 10.77. 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. BTG's P/CF compares to its industry's average P/CF of 34.58. Within the past 12 months, BTG's P/CF has been as high as 11.52 and as low as 5.38, with a median of 7.97.

These are just a handful of the figures considered in B2Gold'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 BTG is an impressive value stock right now.


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