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

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice 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 10.01 right now. For comparison, its industry sports an average P/E of 19.56. Over the past year, BTG's Forward P/E has been as high as 18.06 and as low as 9.83, with a median of 13.66.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 2.87. This compares to its industry's average P/S of 2.9.

Finally, our model also underscores that BTG has a P/CF ratio of 9.67. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 31.75. Over the past 52 weeks, BTG's P/CF has been as high as 11.52 and as low as 5.94, with a median of 8.29.

These figures are just a handful of the metrics value investors tend to look at, but they help show that B2Gold is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, BTG feels like a great value stock at the moment.


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