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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Iamgold (IAG - Free Report) . IAG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 6.66, which compares to its industry's average of 11.86. Over the past year, IAG's Forward P/E has been as high as 140.56 and as low as 6.60, with a median of 10.52.
Investors should also note that IAG holds a PEG ratio of 0.29. 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. IAG's PEG compares to its industry's average PEG of 0.41. Within the past year, IAG's PEG has been as high as 4.23 and as low as 0.29, with a median of 0.54.
Investors should also recognize that IAG has a P/B ratio of 0.89. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. IAG's current P/B looks attractive when compared to its industry's average P/B of 1.29. Over the past year, IAG's P/B has been as high as 1.17 and as low as 0.49, with a median of 0.82.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. IAG has a P/S ratio of 2.01. This compares to its industry's average P/S of 2.73.
Value investors will likely look at more than just these metrics, but the above data helps show that Iamgold is likely undervalued currently. And when considering the strength of its earnings outlook, IAG sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Iamgold (IAG) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company to watch right now is Iamgold (IAG - Free Report) . IAG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 6.66, which compares to its industry's average of 11.86. Over the past year, IAG's Forward P/E has been as high as 140.56 and as low as 6.60, with a median of 10.52.
Investors should also note that IAG holds a PEG ratio of 0.29. 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. IAG's PEG compares to its industry's average PEG of 0.41. Within the past year, IAG's PEG has been as high as 4.23 and as low as 0.29, with a median of 0.54.
Investors should also recognize that IAG has a P/B ratio of 0.89. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. IAG's current P/B looks attractive when compared to its industry's average P/B of 1.29. Over the past year, IAG's P/B has been as high as 1.17 and as low as 0.49, with a median of 0.82.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. IAG has a P/S ratio of 2.01. This compares to its industry's average P/S of 2.73.
Value investors will likely look at more than just these metrics, but the above data helps show that Iamgold is likely undervalued currently. And when considering the strength of its earnings outlook, IAG sticks out at as one of the market's strongest value stocks.