Yahoo Finance Are Investors Undervaluing Amerigo Resources (ARREF) Right Now?
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.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is Amerigo Resources (ARREF). ARREF is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 7.56, while its industry has an average P/E of 19. Over the past 52 weeks, ARREF's Forward P/E has been as high as 31.49 and as low as 4.85, with a median of 6.99.
We should also highlight that ARREF has a P/B ratio of 1.60. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.70. Within the past 52 weeks, ARREF's P/B has been as high as 1.89 and as low as 0.82, with a median of 1.30.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ARREF has a P/S ratio of 1.09. This compares to its industry's average P/S of 2.25.
Finally, our model also underscores that ARREF has a P/CF ratio of 11.29. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. ARREF's P/CF compares to its industry's average P/CF of 11.68. Over the past 52 weeks, ARREF's P/CF has been as high as 13.33 and as low as 2.35, with a median of 4.32.
Another great Mining - Non Ferrous stock you could consider is Lundin Mining (LUNMF), which is a # 2 (Buy) stock with a Value Score of A.
Shares of Lundin Mining are currently trading at a forward earnings multiple of 9.85 and a PEG ratio of 3.20 compared to its industry's P/E and PEG ratios of 19 and 15.83, respectively.
Over the last 12 months, LUNMF's P/E has been as high as 16.52, as low as 3.92, with a median of 9.46, and its PEG ratio has been as high as 3.34, as low as 2.77, with a median of 3.08.
Lundin Mining also has a P/B ratio of 1.14 compared to its industry's price-to-book ratio of 2.70. Over the past year, its P/B ratio has been as high as 1.28, as low as 0.66, with a median of 0.90.
These are just a handful of the figures considered in Amerigo Resources and Lundin Mining's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ARREF and LUNMF is an impressive value stock right now.
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Amerigo Resources Ltd. (ARREF) : Free Stock Analysis Report
Lundin Mining Corp. (LUNMF) : Free Stock Analysis Report
