Are Investors Undervaluing Barrick Gold (GOLD) Right Now? – October 24, 2024

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know our readers all have their own perspectives, so we always look at the latest trends in value, growth, and momentum to find strong picks.

Of these, perhaps no stock market trend is more popular than value investing, a strategy that has proven successful in a variety of market conditions. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are undervalued by the market as a whole.

In addition to the Zacks Rank, investors looking for stocks with specific characteristics can use our Style Scores system. Naturally, value investors will be most interested in the ‘Value’ category of the system. Stocks with “A” Value ratings and high Zacks Ranks are among the best value stocks available at any time.

One company value that investors may notice is Barrick gold (GOLD Free report) . GOLD currently has a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a price-to-earnings ratio of 12.70, while its industry has an average price-to-earnings of 16.03. Over the last twelve months, GOLD’s price-to-earnings ratio has been as high as 22.29 and as low as 12, with a median of 14.62.

We also note that GOLD has a PEG ratio of 0.39. This popular figure is similar to the commonly used price-to-earnings ratio, but the PEG ratio also takes into account a company’s expected earnings growth per share. The GOLD industry currently has an average PEG of 0.55. Over the past twelve months, GOLD’s PEG has been as high as 1.56 and as low as 0.35, with a median of 1.02.

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We should also highlight that GOLD has a price-to-earnings ratio of 1.14. The P/B ratio compares a stock’s market value to its book value, which is defined as total assets minus total liabilities. This stock’s price-to-earnings ratio looks solid compared to its industry average price-to-earnings ratio of 1.97. GOLD’s P/B has been as high as 1.14 and as low as 0.77 over the past year, with a median of 0.93.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock’s price by the company’s revenue. This is a popular metric because sales are more difficult to manipulate on an income statement, so they are often considered a better performance indicator. GOLD has a price/earnings ratio of 3.07. This compares to the industry’s average price-to-earnings ratio of 3.91.

Finally, our model also highlights that GOLD has a price-to-earnings ratio of 10.56. This metric focuses on a company’s operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash prospects. This stock’s P/CF looks attractive compared to its industry’s average P/CF of 19.16. Over the past 52 weeks, GOLD’s P/CF has been as high as 15.14 and as low as 7.45, with a median of 8.95.

I am gold (IAG Free report) could be another strong Mining Gold stock to add to your shortlist. IAG is a #2 (buy) share with a value class A.

Iamgold’s stock currently trades at a forward earnings multiple of 8.82 and a PEG ratio of 0.29, compared to the industry’s P/E and PEG ratios of 16.03 and 0.55, respectively.

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IAG’s Forward P/E has been as high as 140.56 and as low as 6.97, with a median of 18.18. During the same period, the PEG ratio was as high as 4.23, as low as 0.29, with a median of 0.54.

Moreover, Iamgold has a price-to-earnings ratio of 1.29 and its sector’s price-to-book ratio is 1.97. IAG’s P/B has been as high as 1.30 and as low as 0.45 over the last twelve months, with a median of 0.77.

These numbers are just a handful of the metrics investors look at, but they show that Barrick Gold and Iamgold are likely undervalued right now. Considering this, as well as the strength of the earnings outlook, GOLD and IAG feel like a great value stock right now.



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