Should Value Investors Buy Centerra Gold (CGAU) Stock?
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.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.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.Centerra Gold (CGAU) is a stock many investors are watching right now. CGAU 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 9.31 right now. For comparison, its industry sports an average P/E of 14.96. Over the last 12 months, CGAU's Forward P/E has been as high as 13.25 and as low as 7.19, with a median of 10.39.Investors should also note that CGAU holds a PEG ratio of 0.29. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CGAU's industry currently sports an average PEG of 0.53. CGAU's PEG has been as high as 0.89 and as low as 0.28, with a median of 0.75, all within the past year.We should also highlight that CGAU has a P/B ratio of 0.92. The P/B is a method of comparing a stock's market value to 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 1.68. CGAU's P/B has been as high as 0.96 and as low as 0.67, with a median of 0.82, over the past year.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. CGAU has a P/S ratio of 1.15. This compares to its industry's average P/S of 3.12.Finally, we should also recognize that CGAU has a P/CF ratio of 8.96. 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. CGAU's current P/CF looks attractive when compared to its industry's average P/CF of 10.17. Over the past year, CGAU's P/CF has been as high as 9.22 and as low as 4.67, with a median of 5.88.New Gold (NGD) may be another strong Mining - Gold stock to add to your shortlist. NGD is a # 2 (Buy) stock with a Value grade of A.Shares of New Gold currently holds a Forward P/E ratio of 8.63, and its PEG ratio is 0.25. In comparison, its industry sports average P/E and PEG ratios of 14.96 and 0.53.Over the past year, NGD's P/E has been as high as 16.92, as low as 6.98, with a median of 11.35; its PEG ratio has been as high as 0.75, as low as 0.22, with a median of 0.75 during the same time period.Additionally, New Gold has a P/B ratio of 3.20 while its industry's price-to-book ratio sits at 1.68. For NGD, this valuation metric has been as high as 3.22, as low as 1.18, with a median of 2.06 over the past year.These figures are just a handful of the metrics value investors tend to look at, but they help show that Centerra Gold and New Gold are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, CGAU and NGD feels like a great value stock at the moment.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Centerra Gold Inc. (CGAU): Free Stock Analysis Report New Gold Inc. (NGD): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
Quelle: Zacks