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Are Investors Undervaluing Koppers (KOP) Right Now?

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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Koppers (KOP - Free Report) . KOP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 7.94 right now. For comparison, its industry sports an average P/E of 12.75. Over the past 52 weeks, KOP's Forward P/E has been as high as 14.98 and as low as 7.89, with a median of 10.61.

Investors should also note that KOP holds a PEG ratio of 0.44. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. KOP's industry has an average PEG of 1.14 right now. Over the last 12 months, KOP's PEG has been as high as 0.83 and as low as 0.44, with a median of 0.68.

Finally, investors will want to recognize that KOP has a P/CF ratio of 10.04. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 15.43. Within the past 12 months, KOP's P/CF has been as high as 13.42 and as low as 9.11, with a median of 10.85.

These are just a handful of the figures considered in Koppers'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 KOP is an impressive value stock right now.


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