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Should Value Investors Buy Kelly Services (KELYA) Stock?
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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is Kelly Services (KELYA - Free Report) . KELYA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
KELYA is also sporting a PEG ratio of 1.37. 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. KELYA's PEG compares to its industry's average PEG of 1.85. Over the last 12 months, KELYA's PEG has been as high as 1.71 and as low as 1.10, with a median of 1.34.
Another notable valuation metric for KELYA is its P/B ratio of 0.73. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.74. KELYA's P/B has been as high as 0.74 and as low as 0.32, with a median of 0.57, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. KELYA has a P/S ratio of 0.18. This compares to its industry's average P/S of 0.48.
Finally, our model also underscores that KELYA has a P/CF ratio of 7.31. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.54. KELYA's P/CF has been as high as 7.53 and as low as -13.66, with a median of 4.07, all within the past year.
These are only a few of the key metrics included in Kelly Services's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, KELYA looks like an impressive value stock at the moment.
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Should Value Investors Buy Kelly Services (KELYA) Stock?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 company value investors might notice is Kelly Services (KELYA - Free Report) . KELYA is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
KELYA is also sporting a PEG ratio of 1.37. 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. KELYA's PEG compares to its industry's average PEG of 1.85. Over the last 12 months, KELYA's PEG has been as high as 1.71 and as low as 1.10, with a median of 1.34.
Another notable valuation metric for KELYA is its P/B ratio of 0.73. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 1.74. KELYA's P/B has been as high as 0.74 and as low as 0.32, with a median of 0.57, over the past year.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. KELYA has a P/S ratio of 0.18. This compares to its industry's average P/S of 0.48.
Finally, our model also underscores that KELYA has a P/CF ratio of 7.31. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 8.54. KELYA's P/CF has been as high as 7.53 and as low as -13.66, with a median of 4.07, all within the past year.
These are only a few of the key metrics included in Kelly Services's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, KELYA looks like an impressive value stock at the moment.