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Are Investors Undervaluing Kinross Gold (KGC) 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.
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.
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 to watch right now is Kinross Gold (KGC - Free Report) . KGC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.66, while its industry has an average P/E of 13.01. Over the last 12 months, KGC's Forward P/E has been as high as 19 and as low as 10.74, with a median of 14.17.
Investors should also note that KGC holds a PEG ratio of 0.39. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. KGC's PEG compares to its industry's average PEG of 0.44. Within the past year, KGC's PEG has been as high as 2.13 and as low as 0.36, with a median of 0.53.
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. KGC has a P/S ratio of 2.59. This compares to its industry's average P/S of 2.96.
Finally, investors will want to recognize that KGC has a P/CF ratio of 6.61. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.62. Over the past 52 weeks, KGC's P/CF has been as high as 7.65 and as low as 4.18, with a median of 6.23.
These are only a few of the key metrics included in Kinross Gold's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, KGC looks like an impressive value stock at the moment.
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Are Investors Undervaluing Kinross Gold (KGC) Right Now?
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.
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.
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 to watch right now is Kinross Gold (KGC - Free Report) . KGC is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 11.66, while its industry has an average P/E of 13.01. Over the last 12 months, KGC's Forward P/E has been as high as 19 and as low as 10.74, with a median of 14.17.
Investors should also note that KGC holds a PEG ratio of 0.39. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. KGC's PEG compares to its industry's average PEG of 0.44. Within the past year, KGC's PEG has been as high as 2.13 and as low as 0.36, with a median of 0.53.
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. KGC has a P/S ratio of 2.59. This compares to its industry's average P/S of 2.96.
Finally, investors will want to recognize that KGC has a P/CF ratio of 6.61. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 13.62. Over the past 52 weeks, KGC's P/CF has been as high as 7.65 and as low as 4.18, with a median of 6.23.
These are only a few of the key metrics included in Kinross Gold's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, KGC looks like an impressive value stock at the moment.