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Is KBC Group (KBCSY) a Great Value Stock Right Now?

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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.

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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

KBC Group (KBCSY - Free Report) is a stock many investors are watching right now. KBCSY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

Investors should also recognize that KBCSY has a P/B ratio of 1.04. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. KBCSY's current P/B looks attractive when compared to its industry's average P/B of 1.35. Over the past 12 months, KBCSY's P/B has been as high as 1.46 and as low as 0.85, with a median of 1.04.

Finally, investors will want to recognize that KBCSY has a P/CF ratio of 6.63. 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. This stock's P/CF looks attractive against its industry's average P/CF of 12.52. Over the past 52 weeks, KBCSY's P/CF has been as high as 11.55 and as low as 5.65, with a median of 7.64.

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


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