Are Investors Undervaluing Komatsu (KMTUY) Right Now?

KMTUY

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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 stock to keep an eye on 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 holds a P/E ratio of 10.77, while its industry has an average P/E of 15.65. 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 10.04.

Finally, investors should note that KMTUY has a P/CF ratio of 6.08. 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 11.34. Over the past 52 weeks, KMTUY's P/CF has been as high as 8.61 and as low as 4.72, with a median of 6.81.

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

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