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Are Investors Undervaluing KornFerry International (KFY) 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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 KornFerry International (KFY - Free Report) . KFY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 15.19, which compares to its industry's average of 18.51. Over the past 52 weeks, KFY's Forward P/E has been as high as 15.19 and as low as 9.28, with a median of 12.53.

We should also highlight that KFY has a P/B ratio of 2.03. 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 2.28. Within the past 52 weeks, KFY's P/B has been as high as 2.03 and as low as 1.38, with a median of 1.62.

Investors could also keep in mind Randstad Holding (RANJY - Free Report) , an Staffing Firms stock with a Zacks Rank of # 2 (Buy) and Value grade of A.

Additionally, Randstad Holding has a P/B ratio of 1.96 while its industry's price-to-book ratio sits at 2.28. For RANJY, this valuation metric has been as high as 2.33, as low as 1.82, with a median of 2.04 over the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that KornFerry International and Randstad Holding are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KFY and RANJY feels like a great value stock at the moment.


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