| Is Colorado Resources Ltd (CVE:CXO) An Industry Laggard Or Leader? | |
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The metals and mining sector’s PE is currently hovering around 11.31x, lower than the rest of the Canadian stock market PE of 16.48x. This means the industry, on average, is relatively undervalued compared to the wider market – a potential mispricing opportunity here! Though, the industry returned a similar 7.39% on equities compared to the market’s 9.20%. Since Colorado Resources’s earnings doesn’t seem to reflect its true value, its PE ratio isn’t very useful. A loose alternative to gauge Colorado Resources’s value is to assume the stock should be relatively in-line with its industry. Next Steps:Colorado Resources has been a metals and mining industry laggard in the past year. If Colorado Resources has been on your watchlist for a while, now may be a good time to dig deeper into the stock. Although it delivered lower growth relative to its materials peers in the near term, the market may be pessimistic on the stock, leading to a potential undervaluation. However, before you make a decision on the stock, I suggest you look at Colorado Resources’s fundamentals in order to build a holistic investment thesis. To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
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Colorado Resources Ltd.
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CODE : CXO.V |
ISIN : CA19654L1022 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
Colorado Resources is a exploration company based in Canada. Colorado Resources is listed in Canada. Its market capitalisation is CA$ 337.1 millions as of today (US$ 290.6 millions, € 230.0 millions). Its stock quote reached its highest recent level on June 08, 2006 at CA$ 3.50, and its lowest recent point on March 13, 2020 at CA$ 0.03. Colorado Resources has 96 320 000 shares outstanding. |