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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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.
One company value investors might notice is Komatsu (KMTUY - Free Report) . KMTUY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.66 right now. For comparison, its industry sports an average P/E of 12.64. KMTUY's Forward P/E has been as high as 11.91 and as low as 8.29, with a median of 10.81, all within the past year.
We also note that KMTUY holds a PEG ratio of 0.99. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KMTUY's PEG compares to its industry's average PEG of 1. Over the past 52 weeks, KMTUY's PEG has been as high as 2.28 and as low as 0.85, with a median of 1.51.
Finally, our model also underscores that KMTUY has a P/CF ratio of 7.28. 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 9.83. Within the past 12 months, KMTUY's P/CF has been as high as 7.85 and as low as 4.80, with a median of 6.61.
Value investors will likely look at more than just these metrics, but the above data helps show that Komatsu is likely undervalued currently. And when considering the strength of its earnings outlook, KMTUY sticks out at as one of the market's strongest value stocks.
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Is Komatsu (KMTUY) 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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. 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.
One company value investors might notice is Komatsu (KMTUY - Free Report) . KMTUY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 9.66 right now. For comparison, its industry sports an average P/E of 12.64. KMTUY's Forward P/E has been as high as 11.91 and as low as 8.29, with a median of 10.81, all within the past year.
We also note that KMTUY holds a PEG ratio of 0.99. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KMTUY's PEG compares to its industry's average PEG of 1. Over the past 52 weeks, KMTUY's PEG has been as high as 2.28 and as low as 0.85, with a median of 1.51.
Finally, our model also underscores that KMTUY has a P/CF ratio of 7.28. 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 9.83. Within the past 12 months, KMTUY's P/CF has been as high as 7.85 and as low as 4.80, with a median of 6.61.
Value investors will likely look at more than just these metrics, but the above data helps show that Komatsu is likely undervalued currently. And when considering the strength of its earnings outlook, KMTUY sticks out at as one of the market's strongest value stocks.