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Are Investors Undervaluing Kaman (KAMN) 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One stock to keep an eye on is Kaman . KAMN is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 26.03, while its industry has an average P/E of 27. Over the past 52 weeks, KAMN's Forward P/E has been as high as 47.97 and as low as 9.35, with a median of 28.23.

Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. KAMN has a P/S ratio of 0.71. This compares to its industry's average P/S of 2.01.

Finally, investors should note that KAMN has a P/CF ratio of 18.02. 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. KAMN's P/CF compares to its industry's average P/CF of 42.35. Within the past 12 months, KAMN's P/CF has been as high as 32.79 and as low as 9.54, with a median of 23.05.

These are just a handful of the figures considered in Kaman's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that KAMN is an impressive value stock right now.

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