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IMPUY vs. WPM: Which Stock Should Value Investors Buy Now?

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·2 min read
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Investors looking for stocks in the Mining - Miscellaneous sector might want to consider either Impala Platinum Holdings Ltd. (IMPUY) or Wheaton Precious Metals Corp. (WPM). But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.

The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits.

Currently, Impala Platinum Holdings Ltd. has a Zacks Rank of #1 (Strong Buy), while Wheaton Precious Metals Corp. has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that IMPUY has an improving earnings outlook. But this is just one piece of the puzzle for value investors.

Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels.

Our Value category grades stocks based on a number of key metrics, including the tried-and-true P/E ratio, the P/S ratio, earnings yield, and cash flow per share, as well as a variety of other fundamentals that value investors frequently use.

IMPUY currently has a forward P/E ratio of 5.10, while WPM has a forward P/E of 29.02. We also note that IMPUY has a PEG ratio of 0.65. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. WPM currently has a PEG ratio of 5.80.

Another notable valuation metric for IMPUY is its P/B ratio of 2.80. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. By comparison, WPM has a P/B of 3.42.

These metrics, and several others, help IMPUY earn a Value grade of B, while WPM has been given a Value grade of D.

IMPUY sticks out from WPM in both our Zacks Rank and Style Scores models, so value investors will likely feel that IMPUY is the better option right now.


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Impala Platinum Holdings Ltd. (IMPUY) : Free Stock Analysis Report
 
Wheaton Precious Metals Corp. (WPM) : Free Stock Analysis Report
 
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