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Should Value Investors Buy Korea Electric Power (KEP) 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.

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 stock to keep an eye on is Korea Electric Power (KEP - Free Report) . KEP is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 7.91, which compares to its industry's average of 13.55. Over the past 52 weeks, KEP's Forward P/E has been as high as 31.74 and as low as 7.91, with a median of 11.35.

Investors will also notice that KEP has a PEG ratio of 1.58. 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. KEP's PEG compares to its industry's average PEG of 2.14. Over the past 52 weeks, KEP's PEG has been as high as 6.35 and as low as 1.58, with a median of 2.27.

These are just a handful of the figures considered in Korea Electric Power'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 KEP is an impressive value stock right now.


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