Is Kinross Gold (KGC) a Great Value Stock Right Now?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Kinross Gold (KGC) is a stock many investors are watching right now. KGC is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 12.72, which compares to its industry's average of 19.60. Over the past 52 weeks, KGC's Forward P/E has been as high as 30.49 and as low as 12.35, with a median of 23.77.
We should also highlight that KGC has a P/B ratio of 1.29. 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 1.94. Over the past year, KGC's P/B has been as high as 1.44 and as low as 0.66, with a median of 0.94.
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. KGC has a P/S ratio of 1.92. This compares to its industry's average P/S of 2.84.
Value investors will likely look at more than just these metrics, but the above data helps show that Kinross Gold is likely undervalued currently. And when considering the strength of its earnings outlook, KGC sticks out at as one of the market's strongest value stocks.
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