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Is B2Gold Corp (BTG) Stock Undervalued Right Now?

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·3 min read
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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.

Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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 stock to keep an eye on is B2Gold Corp (BTG). BTG is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 10.19. This compares to its industry's average Forward P/E of 15.81. Over the last 12 months, 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 has an average PEG of 2.75 right now. Over the past 52 weeks, BTG's PEG has been as high as 1.78 and as low as 1.01, with a median of 1.28.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. BTG has a P/S ratio of 2.42. This compares to its industry's average P/S of 2.64.

Finally, our model also underscores that BTG has a P/CF ratio of 5.96. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 11.32. Over the past year, BTG's P/CF has been as high as 8.83 and as low as 4.61, with a median of 6.37.

Another great Mining - Gold stock you could consider is Gold Resource (GORO), which is a # 2 (Buy) stock with a Value Score of A.

Furthermore, Gold Resource holds a P/B ratio of 1.36 and its industry's price-to-book ratio is 1.09. GORO's P/B has been as high as 2.39, as low as 0.94, with a median of 1.41 over the past 12 months.

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

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Gold Resource Corporation (GORO) : Free Stock Analysis Report
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