Should Value Investors Buy Galiano Gold (GAU) 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.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 value investors might notice is Galiano Gold (GAU). GAU is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.Investors should also recognize that GAU has a P/B ratio of 1.65. 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 attractive against its industry's average P/B of 1.72. Over the past year, GAU's P/B has been as high as 2.08 and as low as 1.13, with a median of 1.52.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. GAU has a P/S ratio of 1.28. This compares to its industry's average P/S of 3.21.If you're looking for another solid Mining - Gold value stock, take a look at Kinross Gold (KGC). KGC is a # 1 (Strong Buy) stock with a Value score of A.Shares of Kinross Gold currently holds a Forward P/E ratio of 12.93, and its PEG ratio is 0.61. In comparison, its industry sports average P/E and PEG ratios of 13.82 and 0.49.KGC's Forward P/E has been as high as 17.79 and as low as 10.27, with a median of 13.67. During the same time period, its PEG ratio has been as high as 1.89, as low as 0.32, with a median of 0.48.Kinross Gold also has a P/B ratio of 2.47 compared to its industry's price-to-book ratio of 1.72. Over the past year, its P/B ratio has been as high as 2.62, as low as 1.45, with a median of 1.80.These figures are just a handful of the metrics value investors tend to look at, but they help show that Galiano Gold and Kinross Gold are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GAU and KGC 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 Galiano Gold Inc. (GAU): Free Stock Analysis Report Kinross Gold Corporation (KGC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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