Yahoo Finance Are Investors Undervaluing Fortuna Silver Mines (FSM) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 stock to keep an eye on is Fortuna Silver Mines (FSM). FSM is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 10.19, which compares to its industry's average of 21.85. FSM's Forward P/E has been as high as 27.89 and as low as 4.18, with a median of 10.44, all within the past year.
We should also highlight that FSM has a P/B ratio of 0.83. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.68. Over the past 12 months, FSM's P/B has been as high as 0.94 and as low as 0.42, with a median of 0.69.
Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FSM has a P/S ratio of 1.59. This compares to its industry's average P/S of 2.43.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Fortuna Silver Mines is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, FSM feels like a great value stock at the moment.
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Fortuna Silver Mines Inc. (FSM) : Free Stock Analysis Report
