Yahoo Finance Is Lundin Mining (LUNMF) Stock Undervalued 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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 Lundin Mining (LUNMF). LUNMF is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 9.16, which compares to its industry's average of 16.61. LUNMF's Forward P/E has been as high as 16.52 and as low as 3.92, with a median of 9.53, all within the past year.
Another valuation metric that we should highlight is LUNMF's P/B ratio of 1.06. 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 2.29. Within the past 52 weeks, LUNMF's P/B has been as high as 1.28 and as low as 0.66, with a median of 0.90.
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. LUNMF has a P/S ratio of 2.03. This compares to its industry's average P/S of 2.14.
Finally, our model also underscores that LUNMF has a P/CF ratio of 7.34. 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. LUNMF's current P/CF looks attractive when compared to its industry's average P/CF of 11.89. Over the past year, LUNMF's P/CF has been as high as 8.23 and as low as 2.81, with a median of 4.38.
These are only a few of the key metrics included in Lundin Mining'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, LUNMF looks like an impressive value stock at the moment.
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Lundin Mining Corp. (LUNMF) : Free Stock Analysis Report
