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Are Investors Undervaluing Koppers (KOP) Right Now?

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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.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company to watch right now is Koppers (KOP - Free Report) . KOP 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 6.48, while its industry has an average P/E of 16.26. KOP's Forward P/E has been as high as 11.01 and as low as 2.58, with a median of 6.72, all within the past year.

Finally, investors should note that KOP has a P/CF ratio of 3.34. 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. KOP's current P/CF looks attractive when compared to its industry's average P/CF of 11.73. Over the past 52 weeks, KOP's P/CF has been as high as 8.38 and as low as 1.64, with a median of 3.46.

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


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