Are Investors Undervaluing Galiano Gold (GAU) 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.
Galiano Gold (GAU) is a stock many investors are watching right now. GAU is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Another valuation metric that we should highlight is GAU's P/B ratio of 0.99. 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 company's current P/B looks solid when compared to its industry's average P/B of 1.17. Within the past 52 weeks, GAU's P/B has been as high as 0.99 and as low as 0.57, with a median of 0.72.
Finally, investors will want to recognize that GAU has a P/CF ratio of 3.39. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 13.13. Over the past year, GAU's P/CF has been as high as 3.39 and as low as -1.50, with a median of 2.74.
New Gold (NGD) may be another strong Mining - Gold stock to add to your shortlist. NGD is a # 2 (Buy) stock with a Value grade of A.
New Gold is currently trading with a Forward P/E ratio of 12.87 while its PEG ratio sits at 0.24. Both of the company's metrics compare favorably to its industry's average P/E of 18.36 and average PEG ratio of 1.13.
NGD's price-to-earnings ratio has been as high as 33.27 and as low as -15.29, with a median of 12.37, while its PEG ratio has been as high as 6.65 and as low as -3.06, with a median of 2.21, all within the past year.
New Gold also has a P/B ratio of 1.16 compared to its industry's price-to-book ratio of 1.17. Over the past year, its P/B ratio has been as high as 1.18, as low as 0.60, with a median of 0.84.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Galiano Gold and New Gold are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, GAU and NGD feels like a great value stock at the moment.
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Galiano Gold Inc. (GAU) : Free Stock Analysis Report
New Gold Inc. (NGD) : Free Stock Analysis Report
