Yahoo Finance Should Value Investors Buy Equinox Gold (EQX) Stock?
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 company to watch right now is Equinox Gold (EQX). EQX is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.04 right now. For comparison, its industry sports an average P/E of 15.59. EQX's Forward P/E has been as high as 33.14 and as low as -191.15, with a median of 19.27, all within the past year.
Another notable valuation metric for EQX is its P/B ratio of 1.03. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.32. Over the past 12 months, EQX's P/B has been as high as 1.04 and as low as 0.52, with a median of 0.64.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by 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. EQX has a P/S ratio of 2.27. This compares to its industry's average P/S of 3.23.
Finally, our model also underscores that EQX has a P/CF ratio of 10.17. 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. This stock's P/CF looks attractive against its industry's average P/CF of 12.06. Over the past year, EQX's P/CF has been as high as 11.44 and as low as 4.91, with a median of 6.58.
Another great Mining - Gold stock you could consider is Barrick Gold (GOLD), which is a # 2 (Buy) stock with a Value Score of A.
Shares of Barrick Gold currently holds a Forward P/E ratio of 13.90, and its PEG ratio is 0.42. In comparison, its industry sports average P/E and PEG ratios of 15.59 and 0.51.
GOLD's Forward P/E has been as high as 22.29 and as low as 13.15, with a median of 15.41. During the same time period, its PEG ratio has been as high as 8.71, as low as 0.35, with a median of 1.20.
Furthermore, Barrick Gold holds a P/B ratio of 0.95 and its industry's price-to-book ratio is 1.32. GOLD's P/B has been as high as 1.02, as low as 0.77, with a median of 0.91 over the past 12 months.
Value investors will likely look at more than just these metrics, but the above data helps show that Equinox Gold and Barrick Gold are likely undervalued currently. And when considering the strength of its earnings outlook, EQX and GOLD sticks out as one of the market's strongest value stocks.
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Equinox Gold Corp. (EQX) : Free Stock Analysis Report
Barrick Gold Corporation (GOLD) : Free Stock Analysis Report
