Back to top

Image: Bigstock

Are Investors Undervaluing Korea Electric Power (KEP) Right Now?

Read MoreHide Full Article

The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. 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.

Korea Electric Power (KEP - Free Report) is a stock many investors are watching right now. KEP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.08, while its industry has an average P/E of 13.40. Over the past 52 weeks, KEP's Forward P/E has been as high as 27.17 and as low as 6.97, with a median of 10.73.

We also note that KEP holds a PEG ratio of 1.42. 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. KEP's industry has an average PEG of 2.11 right now. Over the past 52 weeks, KEP's PEG has been as high as 5.43 and as low as 1.39, with a median of 2.15.

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


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Korea Electric Power Corporation (KEP) - free report >>

Published in