Yahoo Finance LUNMF or FCX: Which Is the Better Value Stock Right Now?
Investors looking for stocks in the Mining - Non Ferrous sector might want to consider either Lundin Mining (LUNMF) or Freeport-McMoRan (FCX). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Lundin Mining has a Zacks Rank of #2 (Buy), while Freeport-McMoRan has a Zacks Rank of #3 (Hold) right now. The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that LUNMF has an improving earnings outlook. However, value investors will care about much more than just this.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
LUNMF currently has a forward P/E ratio of 14.26, while FCX has a forward P/E of 31.32. We also note that LUNMF has a PEG ratio of 0.29. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. FCX currently has a PEG ratio of 2.75.
Another notable valuation metric for LUNMF is its P/B ratio of 1.38. 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. For comparison, FCX has a P/B of 2.66.
Based on these metrics and many more, LUNMF holds a Value grade of A, while FCX has a Value grade of C.
LUNMF stands above FCX thanks to its solid earnings outlook, and based on these valuation figures, we also feel that LUNMF is the superior value option right now.
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Lundin Mining Corp. (LUNMF) : Free Stock Analysis Report
Freeport-McMoRan Inc. (FCX) : Free Stock Analysis Report
