Is Galiano Gold (GAU) 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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 company to watch right now is Galiano Gold (GAU). GAU is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.
We should also highlight that GAU has a P/B ratio of 0.80. 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. This stock's P/B looks attractive against its industry's average P/B of 1.20. Over the past 12 months, GAU's P/B has been as high as 0.93 and as low as 0.61, with a median of 0.74.
Finally, investors should note that GAU has a P/CF ratio of 3.08. 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. GAU's current P/CF looks attractive when compared to its industry's average P/CF of 11.45. Over the past year, GAU's P/CF has been as high as 3.32 and as low as -1.72, with a median of 2.72.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Galiano Gold is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GAU feels like a great value stock at the moment.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Galiano Gold Inc. (GAU) : Free Stock Analysis Report
