Yahoo Finance Should Value Investors Buy Centerra Gold (CGAU) Stock?
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.
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.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One stock to keep an eye on is Centerra Gold (CGAU). CGAU is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 10.51 right now. For comparison, its industry sports an average P/E of 14.45. CGAU's Forward P/E has been as high as 212.86 and as low as 9.76, with a median of 14.63, all within the past year.
We should also highlight that CGAU has a P/B ratio of 0.92. 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 attractive against its industry's average P/B of 1.19. Within the past 52 weeks, CGAU's P/B has been as high as 0.96 and as low as 0.57, with a median of 0.74.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. 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 1.22. This compares to its industry's average P/S of 3.43.
Finally, we should also recognize that CGAU has a P/CF ratio of 8.30. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. CGAU's P/CF compares to its industry's average P/CF of 11.18. Within the past 12 months, CGAU's P/CF has been as high as 27.27 and as low as -18.01, with a median of -6.30.
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
