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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 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 10.54 right now. For comparison, its industry sports an average P/E of 14.10. Over the last 12 months, KMTUY's Forward P/E has been as high as 11.38 and as low as 8.06, with a median of 10.33.
Finally, investors will want to recognize that KMTUY has a P/CF ratio of 7.16. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 9.43. KMTUY's P/CF has been as high as 7.86 and as low as 5.70, with a median of 6.97, all within the past year.
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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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 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 10.54 right now. For comparison, its industry sports an average P/E of 14.10. Over the last 12 months, KMTUY's Forward P/E has been as high as 11.38 and as low as 8.06, with a median of 10.33.
Finally, investors will want to recognize that KMTUY has a P/CF ratio of 7.16. 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 company's current P/CF looks solid when compared to its industry's average P/CF of 9.43. KMTUY's P/CF has been as high as 7.86 and as low as 5.70, with a median of 6.97, all within the past year.
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.