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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Koppers (KOP - Free Report) is a stock many investors are watching right now. KOP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.28, which compares to its industry's average of 13.07. Over the past 52 weeks, KOP's Forward P/E has been as high as 8.56 and as low as 4.57, with a median of 6.77.
Another notable valuation metric for KOP is its P/B ratio of 1.58. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.01. Over the past year, KOP's P/B has been as high as 1.98 and as low as 1.12, with a median of 1.55.
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. KOP has a P/S ratio of 0.33. This compares to its industry's average P/S of 0.7.
Finally, investors will want to recognize that KOP has a P/CF ratio of 5.59. 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. KOP's current P/CF looks attractive when compared to its industry's average P/CF of 7.11. Over the past year, KOP's P/CF has been as high as 6.77 and as low as 3.35, with a median of 4.92.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Koppers is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KOP feels like a great value stock at the moment.
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Should Value Investors Buy Koppers (KOP) Stock?
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
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.
Koppers (KOP - Free Report) is a stock many investors are watching right now. KOP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.28, which compares to its industry's average of 13.07. Over the past 52 weeks, KOP's Forward P/E has been as high as 8.56 and as low as 4.57, with a median of 6.77.
Another notable valuation metric for KOP is its P/B ratio of 1.58. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.01. Over the past year, KOP's P/B has been as high as 1.98 and as low as 1.12, with a median of 1.55.
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. KOP has a P/S ratio of 0.33. This compares to its industry's average P/S of 0.7.
Finally, investors will want to recognize that KOP has a P/CF ratio of 5.59. 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. KOP's current P/CF looks attractive when compared to its industry's average P/CF of 7.11. Over the past year, KOP's P/CF has been as high as 6.77 and as low as 3.35, with a median of 4.92.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Koppers is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KOP feels like a great value stock at the moment.