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ARREF or SCCO: Which Is the Better Value Stock Right Now?
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Investors looking for stocks in the Mining - Non Ferrous sector might want to consider either Amerigo Resources (ARREF - Free Report) or Southern Copper (SCCO - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Amerigo Resources is sporting a Zacks Rank of #2 (Buy), while Southern Copper has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ARREF is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ARREF currently has a forward P/E ratio of 8.79, while SCCO has a forward P/E of 22.12. We also note that ARREF has a PEG ratio of 0.44. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SCCO currently has a PEG ratio of 1.54.
Another notable valuation metric for ARREF is its P/B ratio of 1.82. 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. By comparison, SCCO has a P/B of 8.71.
These metrics, and several others, help ARREF earn a Value grade of A, while SCCO has been given a Value grade of C.
ARREF stands above SCCO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ARREF is the superior value option right now.
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ARREF or SCCO: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Mining - Non Ferrous sector might want to consider either Amerigo Resources (ARREF - Free Report) or Southern Copper (SCCO - Free Report) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.
We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank emphasizes companies with positive estimate revision trends, and our Style Scores highlight stocks with specific traits.
Right now, Amerigo Resources is sporting a Zacks Rank of #2 (Buy), while Southern Copper has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that ARREF is likely seeing its earnings outlook improve to a greater extent. But this is just one factor that value investors are interested in.
Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
ARREF currently has a forward P/E ratio of 8.79, while SCCO has a forward P/E of 22.12. We also note that ARREF has a PEG ratio of 0.44. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SCCO currently has a PEG ratio of 1.54.
Another notable valuation metric for ARREF is its P/B ratio of 1.82. 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. By comparison, SCCO has a P/B of 8.71.
These metrics, and several others, help ARREF earn a Value grade of A, while SCCO has been given a Value grade of C.
ARREF stands above SCCO thanks to its solid earnings outlook, and based on these valuation figures, we also feel that ARREF is the superior value option right now.