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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Komatsu (KMTUY - Free Report) . KMTUY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 10.88. This compares to its industry's average Forward P/E of 15.44. Over the last 12 months, KMTUY's Forward P/E has been as high as 11.41 and as low as 8.29, with a median of 10.05.
Finally, investors will want to recognize that KMTUY has a P/CF ratio of 6.10. 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. KMTUY's P/CF compares to its industry's average P/CF of 11.28. KMTUY's P/CF has been as high as 8.49 and as low as 4.72, with a median of 6.65, all within the past year.
Investors could also keep in mind Terex (TEX - Free Report) , an Manufacturing - Construction and Mining stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Terex is trading at a forward earnings multiple of 9 at the moment, with a PEG ratio of 0.49. This compares to its industry's average P/E of 15.44 and average PEG ratio of 1.12.
Over the last 12 months, TEX's P/E has been as high as 16.48, as low as 6.36, with a median of 8.38, and its PEG ratio has been as high as 0.57, as low as 0.36, with a median of 0.46.
Additionally, Terex has a P/B ratio of 2.82 while its industry's price-to-book ratio sits at 6.33. For TEX, this valuation metric has been as high as 3, as low as 1.73, with a median of 2.28 over the past year.
These are just a handful of the figures considered in Komatsu and Terex'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 KMTUY and TEX is an impressive value stock right now.
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Should Value Investors Buy Komatsu (KMTUY) Stock?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.
One company value investors might notice is Komatsu (KMTUY - Free Report) . KMTUY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 10.88. This compares to its industry's average Forward P/E of 15.44. Over the last 12 months, KMTUY's Forward P/E has been as high as 11.41 and as low as 8.29, with a median of 10.05.
Finally, investors will want to recognize that KMTUY has a P/CF ratio of 6.10. 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. KMTUY's P/CF compares to its industry's average P/CF of 11.28. KMTUY's P/CF has been as high as 8.49 and as low as 4.72, with a median of 6.65, all within the past year.
Investors could also keep in mind Terex (TEX - Free Report) , an Manufacturing - Construction and Mining stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Terex is trading at a forward earnings multiple of 9 at the moment, with a PEG ratio of 0.49. This compares to its industry's average P/E of 15.44 and average PEG ratio of 1.12.
Over the last 12 months, TEX's P/E has been as high as 16.48, as low as 6.36, with a median of 8.38, and its PEG ratio has been as high as 0.57, as low as 0.36, with a median of 0.46.
Additionally, Terex has a P/B ratio of 2.82 while its industry's price-to-book ratio sits at 6.33. For TEX, this valuation metric has been as high as 3, as low as 1.73, with a median of 2.28 over the past year.
These are just a handful of the figures considered in Komatsu and Terex'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 KMTUY and TEX is an impressive value stock right now.