Should Value Investors Buy Amerigo Resources (ARREF) 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, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 Amerigo Resources (ARREF). ARREF is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A.Another notable valuation metric for ARREF is its P/B ratio of 1.78. 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. ARREF's current P/B looks attractive when compared to its industry's average P/B of 2.94. Over the past 12 months, ARREF's P/B has been as high as 2.34 and as low as 1.44, with a median of 1.77.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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. ARREF has a P/S ratio of 1.1. This compares to its industry's average P/S of 2.52.Finally, investors will want to recognize that ARREF has a P/CF ratio of 4.71. 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. ARREF's current P/CF looks attractive when compared to its industry's average P/CF of 15.97. Over the past 52 weeks, ARREF's P/CF has been as high as 10.75 and as low as 4.67, with a median of 6.73.Value investors will likely look at more than just these metrics, but the above data helps show that Amerigo Resources is likely undervalued currently. And when considering the strength of its earnings outlook, ARREF sticks out at as one of the market's strongest value stocks.Free: 5 Stocks to Buy As Infrastructure Spending SoarsTrillions of dollars in Federal funds have been earmarked to repair and upgrade America’s infrastructure. In addition to roads and bridges, this flood of cash will pour into AI data centers, renewable energy sources and more.In, you’ll discover 5 surprising stocks positioned to profit the most from the spending spree that’s just getting started in this space.Download How to Profit from the Trillion-Dollar Infrastructure Boom absolutely free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amerigo Resources Ltd. (ARREF): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks