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Is KT Corp. (KT) Stock Undervalued Right Now?

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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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company value investors might notice is KT Corp. (KT - Free Report) . KT is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 7, which compares to its industry's average of 10.82. Over the past 52 weeks, KT's Forward P/E has been as high as 10.03 and as low as 5.48, with a median of 8.12.

Investors will also notice that KT has a PEG ratio of 0.57. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings 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 0.76.

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


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