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NEM or RGLD: Which Is the Better Value Stock Right Now?
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Investors interested in stocks from the Mining - Gold sector have probably already heard of Newmont Corporation (NEM - Free Report) and Royal Gold (RGLD - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Newmont Corporation and Royal Gold have a Zacks Rank of #1 (Strong Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
NEM currently has a forward P/E ratio of 12.27, while RGLD has a forward P/E of 20.40. We also note that NEM has a PEG ratio of 0.76. 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. RGLD currently has a PEG ratio of 1.08.
Another notable valuation metric for NEM is its P/B ratio of 2.13. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, RGLD has a P/B of 3.12.
These are just a few of the metrics contributing to NEM's Value grade of B and RGLD's Value grade of D.
Both NEM and RGLD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that NEM is the superior value option right now.
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NEM or RGLD: Which Is the Better Value Stock Right Now?
Investors interested in stocks from the Mining - Gold sector have probably already heard of Newmont Corporation (NEM - Free Report) and Royal Gold (RGLD - 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.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.
Both Newmont Corporation and Royal Gold have a Zacks Rank of #1 (Strong Buy) right now. Investors should feel comfortable knowing that both of these stocks have an improving earnings outlook since the Zacks Rank favors companies that have witnessed positive analyst estimate revisions. But this is just one piece of the puzzle for value investors.
Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.
Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.
NEM currently has a forward P/E ratio of 12.27, while RGLD has a forward P/E of 20.40. We also note that NEM has a PEG ratio of 0.76. 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. RGLD currently has a PEG ratio of 1.08.
Another notable valuation metric for NEM is its P/B ratio of 2.13. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, RGLD has a P/B of 3.12.
These are just a few of the metrics contributing to NEM's Value grade of B and RGLD's Value grade of D.
Both NEM and RGLD are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that NEM is the superior value option right now.