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Is Kinross Gold (KGC) Stock Undervalued Right Now?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Kinross Gold (KGC). KGC is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 10.94. This compares to its industry's average Forward P/E of 19.45. Over the past 52 weeks, KGC's Forward P/E has been as high as 20.64 and as low as 5.77, with a median of 8.42.

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Another notable valuation metric for KGC is its P/B ratio of 0.84. The P/B ratio is used to compare a stock's market value with 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 1.11. Within the past 52 weeks, KGC's P/B has been as high as 1.25 and as low as 0.64, with a median of 0.86.

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 1.54. This compares to its industry's average P/S of 2.81.

If you're looking for another solid Mining - Gold value stock, take a look at New Gold (NGD). NGD is a # 2 (Buy) stock with a Value score of A.

Shares of New Gold are currently trading at a forward earnings multiple of 18 and a PEG ratio of 3.60 compared to its industry's P/E and PEG ratios of 19.45 and 3.96, respectively.

NGD's Forward P/E has been as high as 33.27 and as low as -15.29, with a median of 11.23. During the same time period, its PEG ratio has been as high as 6.65, as low as -3.06, with a median of 2.25.

New Gold also has a P/B ratio of 0.68 compared to its industry's price-to-book ratio of 1.11. Over the past year, its P/B ratio has been as high as 1.43, as low as 0.42, with a median of 0.73.

These are just a handful of the figures considered in Kinross Gold and New Gold's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that KGC and NGD is an impressive value stock right now.

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Kinross Gold Corporation (KGC) : Free Stock Analysis Report

New Gold Inc. (NGD) : Free Stock Analysis Report

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Zacks Investment Research