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Should Value Investors Buy KT Corp. (KT) Stock?

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

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 company value investors might notice is KT Corp. (KT - Free Report) . KT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.25, while its industry has an average P/E of 10.93. KT's Forward P/E has been as high as 10.03 and as low as 5.48, with a median of 8.27, all within the past year.

Investors should also note that KT holds a PEG ratio of 0.59. 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. KT's industry has an average PEG of 0.96 right now. Within the past year, KT's PEG has been as high as 0.88 and as low as 0.53, with a median of 0.77.

These figures are just a handful of the metrics value investors tend to look at, but they help show that KT Corp. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KT feels like a great value stock at the moment.


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