Should Value Investors Buy Silver Standard Resources (SSRM) Stock?
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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
One company to watch right now is Silver Standard Resources (SSRM). SSRM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.
Investors will also notice that SSRM has a PEG ratio of 1.21. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. SSRM's PEG compares to its industry's average PEG of 1.24. SSRM's PEG has been as high as 5.81 and as low as 0.54, with a median of 1.31, all within the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. SSRM has a P/S ratio of 0.7. This compares to its industry's average P/S of 1.85.
Silvercorp Metals (SVM) may be another strong Mining - Miscellaneous stock to add to your shortlist. SVM is a # 2 (Buy) stock with a Value grade of A.
Additionally, Silvercorp Metals has a P/B ratio of 0.76 while its industry's price-to-book ratio sits at 5.38. For SVM, this valuation metric has been as high as 1.27, as low as 0.65, with a median of 0.85 over the past year.
Value investors will likely look at more than just these metrics, but the above data helps show that Silver Standard Resources and Silvercorp Metals are likely undervalued currently. And when considering the strength of its earnings outlook, SSRM and SVM sticks out as one of the market's strongest value stocks.
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Silver Standard Resources Inc. (SSRM) : Free Stock Analysis Report
Silvercorp Metals Inc. (SVM) : Free Stock Analysis Report
