Yahoo Finance Should Value Investors Buy Centerra Gold (CGAU) Stock?
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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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), as well as an A grade for Value. The stock is trading with a P/E ratio of 10.91, which compares to its industry's average of 14.83. Over the past 52 weeks, CGAU's Forward P/E has been as high as 212.86 and as low as 9.71, with a median of 14.29.
Another notable valuation metric for CGAU is its P/B ratio of 0.88. 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 1.25. CGAU's P/B has been as high as 0.94 and as low as 0.57, with a median of 0.74, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. CGAU has a P/S ratio of 1.24. This compares to its industry's average P/S of 3.11.
Finally, our model also underscores that CGAU has a P/CF ratio of 7.58. 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 stock's P/CF looks attractive against its industry's average P/CF of 11.44. 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 -5.90.
These are just a handful of the figures considered in Centerra Gold's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that CGAU is an impressive value stock right now.
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Centerra Gold Inc. (CGAU) : Free Stock Analysis Report
