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Is Kirin (KNBWY) Stock Undervalued Right Now?
While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.
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.
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 Kirin (KNBWY - Free Report) . KNBWY is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock is trading with a P/E ratio of 14.11, which compares to its industry's average of 20.88. Over the past year, KNBWY's Forward P/E has been as high as 15.50 and as low as 9.66, with a median of 13.57.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. KNBWY has a P/S ratio of 0.81. This compares to its industry's average P/S of 1.73.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Kirin is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KNBWY feels like a great value stock at the moment.