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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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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) and an A for Value. The stock holds a P/E ratio of 5.20, while its industry has an average P/E of 10.66. Over the past year, KOP's Forward P/E has been as high as 8.05 and as low as 4.88, with a median of 6.31.
Investors should also recognize that KOP has a P/B ratio of 1.27. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.25. Within the past 52 weeks, KOP's P/B has been as high as 1.97 and as low as 1.10, with a median of 1.47.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. KOP has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.63.
Finally, we should also recognize that KOP has a P/CF ratio of 4.15. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.93. Over the past 52 weeks, KOP's P/CF has been as high as 5.83 and as low as 3.17, with a median of 4.41.
These are only a few of the key metrics included in Koppers'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, KOP looks like an impressive value stock at the moment.
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Are Investors Undervaluing Koppers (KOP) Right Now?
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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) and an A for Value. The stock holds a P/E ratio of 5.20, while its industry has an average P/E of 10.66. Over the past year, KOP's Forward P/E has been as high as 8.05 and as low as 4.88, with a median of 6.31.
Investors should also recognize that KOP has a P/B ratio of 1.27. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.25. Within the past 52 weeks, KOP's P/B has been as high as 1.97 and as low as 1.10, with a median of 1.47.
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 prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. KOP has a P/S ratio of 0.28. This compares to its industry's average P/S of 0.63.
Finally, we should also recognize that KOP has a P/CF ratio of 4.15. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 6.93. Over the past 52 weeks, KOP's P/CF has been as high as 5.83 and as low as 3.17, with a median of 4.41.
These are only a few of the key metrics included in Koppers'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, KOP looks like an impressive value stock at the moment.