Should Value Investors Buy Korea Electric Power (KEP) Stock?

KEP

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.

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.

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 stock to keep an eye on is Korea Electric Power (KEP - Free Report) . KEP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.08, while its industry has an average P/E of 13.45. Over the past year, KEP's Forward P/E has been as high as 27.17 and as low as 6.98, with a median of 10.82.

Investors should also note that KEP holds a PEG ratio of 1.42. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. KEP's industry has an average PEG of 2.12 right now. Over the last 12 months, KEP's PEG has been as high as 5.43 and as low as 1.40, with a median of 2.16.

These are just a handful of the figures considered in Korea Electric Power'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 KEP is an impressive value stock right now.

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