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Is Kinross Gold (KGC) a Great Value Stock Right Now?

Zacks Equity Research
In the latest trading session, Estee Lauder (EL) closed at $190.83, marking a +0.31% move from the previous day.

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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 Kinross Gold (KGC). KGC is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 24.95. This compares to its industry's average Forward P/E of 32.19. KGC's Forward P/E has been as high as 30.49 and as low as 14.54, with a median of 20.17, all within the past year.

Investors should also recognize that KGC has a P/B ratio of 0.92. 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 1.71. Within the past 52 weeks, KGC's P/B has been as high as 1.10 and as low as 0.66, with a median of 0.90.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. KGC has a P/S ratio of 1.35. This compares to its industry's average P/S of 2.46.

Finally, investors will want to recognize that KGC has a P/CF ratio of 6.18. 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. KGC's P/CF compares to its industry's average P/CF of 15.94. KGC's P/CF has been as high as 7.03 and as low as 2.91, with a median of 3.81, all within the past year.

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


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