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Is KornFerry International (KFY) Stock Undervalued Right Now?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 stock to keep an eye on is KornFerry International (KFY - Free Report) . KFY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 12.88. This compares to its industry's average Forward P/E of 16.41. Over the past year, KFY's Forward P/E has been as high as 15.67 and as low as 9.28, with a median of 13.22.

Another notable valuation metric for KFY is its P/B ratio of 1.86. 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. KFY's current P/B looks attractive when compared to its industry's average P/B of 2.18. Within the past 52 weeks, KFY's P/B has been as high as 2.04 and as low as 1.38, with a median of 1.62.

These are only a few of the key metrics included in KornFerry International's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, KFY looks like an impressive value stock at the moment.


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