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Should Value Investors Buy Kinross Gold (KGC) Stock?
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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 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 Kinross Gold (KGC - Free Report) . KGC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.34 right now. For comparison, its industry sports an average P/E of 12.81. Over the past 52 weeks, KGC's Forward P/E has been as high as 19 and as low as 10.74, with a median of 14.10.
KGC is also sporting a PEG ratio of 0.36. 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. KGC's PEG compares to its industry's average PEG of 0.42. Over the last 12 months, KGC's PEG has been as high as 2.13 and as low as 0.34, with a median of 0.50.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. KGC has a P/S ratio of 2.56. This compares to its industry's average P/S of 2.9.
Finally, investors should note that KGC has a P/CF ratio of 6.51. 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 13.54. Within the past 12 months, KGC's P/CF has been as high as 7.65 and as low as 4.18, with a median of 6.26.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Kinross Gold is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KGC feels like a great value stock at the moment.
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Should Value Investors Buy Kinross Gold (KGC) Stock?
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 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 Kinross Gold (KGC - Free Report) . KGC is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.34 right now. For comparison, its industry sports an average P/E of 12.81. Over the past 52 weeks, KGC's Forward P/E has been as high as 19 and as low as 10.74, with a median of 14.10.
KGC is also sporting a PEG ratio of 0.36. 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. KGC's PEG compares to its industry's average PEG of 0.42. Over the last 12 months, KGC's PEG has been as high as 2.13 and as low as 0.34, with a median of 0.50.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. KGC has a P/S ratio of 2.56. This compares to its industry's average P/S of 2.9.
Finally, investors should note that KGC has a P/CF ratio of 6.51. 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 13.54. Within the past 12 months, KGC's P/CF has been as high as 7.65 and as low as 4.18, with a median of 6.26.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Kinross Gold is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KGC feels like a great value stock at the moment.