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Is B2Gold Corp (BTG) a Great Value Stock Right Now?

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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 value investors might notice is B2Gold Corp (BTG). BTG is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 11.54 right now. For comparison, its industry sports an average P/E of 18.03. Over the past 52 weeks, BTG's Forward P/E has been as high as 13.99 and as low as 7.18, with a median of 9.48.

BTG is also sporting a PEG ratio of 1.11. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. BTG's industry currently sports an average PEG of 3.23. Within the past year, BTG's PEG has been as high as 1.78 and as low as 1.01, with a median of 1.33.

We should also highlight that BTG has a P/B ratio of 1.54. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. BTG's current P/B looks attractive when compared to its industry's average P/B of 1.56. BTG's P/B has been as high as 2.07 and as low as 1.24, with a median of 1.53, 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. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. BTG has a P/S ratio of 2.55. This compares to its industry's average P/S of 2.89.

Finally, investors should note that BTG has a P/CF ratio of 5.73. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. BTG's P/CF compares to its industry's average P/CF of 11. Within the past 12 months, BTG's P/CF has been as high as 8.83 and as low as 4.61, with a median of 6.34.

Investors could also keep in mind Equinox Gold (EQX), an Mining - Gold stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Equinox Gold sports a P/B ratio of 0.85 as well; this compares to its industry's price-to-book ratio of 1.56. In the past 52 weeks, EQX's P/B has been as high as 1.53, as low as 0.65, with a median of 0.91.

Value investors will likely look at more than just these metrics, but the above data helps show that B2Gold Corp and Equinox Gold are likely undervalued currently. And when considering the strength of its earnings outlook, BTG and EQX sticks out as one of the market's strongest value stocks.


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