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Is Gold Resource (GORO) Stock Undervalued 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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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.

Gold Resource (GORO) is a stock many investors are watching right now. GORO is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 10.40 right now. For comparison, its industry sports an average P/E of 14.14. Over the past 52 weeks, GORO's Forward P/E has been as high as 32 and as low as 9.06, with a median of 13.93.

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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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. GORO has a P/S ratio of 0.96. This compares to its industry's average P/S of 2.22.

Finally, our model also underscores that GORO has a P/CF ratio of 4.44. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 9.40. Over the past 52 weeks, GORO's P/CF has been as high as 9.10 and as low as 4.38, with a median of 5.52.

Iamgold (IAG) may be another strong Mining - Gold stock to add to your shortlist. IAG is a # 2 (Buy) stock with a Value grade of A.

Shares of Iamgold currently holds a Forward P/E ratio of 13.32, and its PEG ratio is 4.44. In comparison, its industry sports average P/E and PEG ratios of 14.14 and 3.20.


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Gold Resource Corporation (GORO) : Free Stock Analysis Report
 
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