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Are Investors Undervaluing Komatsu (KMTUY) Right Now?
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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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now is Komatsu (KMTUY - Free Report) . KMTUY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.69 right now. For comparison, its industry sports an average P/E of 13.68. Over the last 12 months, KMTUY's Forward P/E has been as high as 11.91 and as low as 8.06, with a median of 10.66.
Finally, we should also recognize that KMTUY has a P/CF ratio of 6.82. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9.84. Within the past 12 months, KMTUY's P/CF has been as high as 7.86 and as low as 5.70, with a median of 6.64.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Komatsu is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KMTUY feels like a great value stock at the moment.
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Are Investors Undervaluing Komatsu (KMTUY) 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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 company to watch right now is Komatsu (KMTUY - Free Report) . KMTUY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.69 right now. For comparison, its industry sports an average P/E of 13.68. Over the last 12 months, KMTUY's Forward P/E has been as high as 11.91 and as low as 8.06, with a median of 10.66.
Finally, we should also recognize that KMTUY has a P/CF ratio of 6.82. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 9.84. Within the past 12 months, KMTUY's P/CF has been as high as 7.86 and as low as 5.70, with a median of 6.64.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Komatsu is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KMTUY feels like a great value stock at the moment.