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Is Kinross Gold (KGC) a Great Value Stock 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Kinross Gold (KGC - Free Report) . KGC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 11.30 right now. For comparison, its industry sports an average P/E of 24.30. Over the past year, KGC's Forward P/E has been as high as 27.13 and as low as 7.07, with a median of 12.66.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. KGC has a P/S ratio of 2.29. This compares to its industry's average P/S of 3.7.

Finally, our model also underscores that KGC has a P/CF ratio of 5.41. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 9.76. Within the past 12 months, KGC's P/CF has been as high as 9.29 and as low as 3, with a median of 6.20.

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


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