Are Investors Undervaluing Centerra Gold (CGAU) Right Now?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is Centerra Gold (CGAU). CGAU is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 12.75, while its industry has an average P/E of 15.68. CGAU's Forward P/E has been as high as 212.86 and as low as 9.36, with a median of 14.86, all within the past year.

We also note that CGAU holds a PEG ratio of 0.71. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. CGAU's PEG compares to its industry's average PEG of 1.10. Within the past year, CGAU's PEG has been as high as 11.30 and as low as 0.55, with a median of 0.81.

Investors should also recognize that CGAU has a P/B ratio of 0.86. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 1.58. Over the past 12 months, CGAU's P/B has been as high as 0.86 and as low as 0.57, with a median of 0.74.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. CGAU has a P/S ratio of 1.28. This compares to its industry's average P/S of 3.53.

These are only a few of the key metrics included in Centerra Gold's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, CGAU looks like an impressive value stock at the moment.

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Centerra Gold Inc. (CGAU) : Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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