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Is Kelly Services (KELYA) Stock Undervalued Right Now?
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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Kelly Services (KELYA - Free Report) is a stock many investors are watching right now. KELYA is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 8.10, while its industry has an average P/E of 15.12. Over the past year, KELYA's Forward P/E has been as high as 12.99 and as low as 7.80, with a median of 10.60.
Investors should also note that KELYA holds a PEG ratio of 0.62. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. KELYA's PEG compares to its industry's average PEG of 1.48. Within the past year, KELYA's PEG has been as high as 1 and as low as 0.60, with a median of 0.82.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. KELYA has a P/S ratio of 0.16. This compares to its industry's average P/S of 0.4.
Finally, investors should note that KELYA has a P/CF ratio of 7.70. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.34. Within the past 12 months, KELYA's P/CF has been as high as 10.34 and as low as 6.32, with a median of 7.81.
Randstad Holding (RANJY - Free Report) may be another strong Staffing Firms stock to add to your shortlist. RANJY is a # 2 (Buy) stock with a Value grade of A.
Randstad Holding sports a P/B ratio of 1.93 as well; this compares to its industry's price-to-book ratio of 2.09. In the past 52 weeks, RANJY's P/B has been as high as 2.29, as low as 1.82, with a median of 2.05.
Value investors will likely look at more than just these metrics, but the above data helps show that Kelly Services and Randstad Holding are likely undervalued currently. And when considering the strength of its earnings outlook, KELYA and RANJY sticks out as one of the market's strongest value stocks.
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Is Kelly Services (KELYA) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find 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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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.
Kelly Services (KELYA - Free Report) is a stock many investors are watching right now. KELYA is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 8.10, while its industry has an average P/E of 15.12. Over the past year, KELYA's Forward P/E has been as high as 12.99 and as low as 7.80, with a median of 10.60.
Investors should also note that KELYA holds a PEG ratio of 0.62. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. KELYA's PEG compares to its industry's average PEG of 1.48. Within the past year, KELYA's PEG has been as high as 1 and as low as 0.60, with a median of 0.82.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. KELYA has a P/S ratio of 0.16. This compares to its industry's average P/S of 0.4.
Finally, investors should note that KELYA has a P/CF ratio of 7.70. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.34. Within the past 12 months, KELYA's P/CF has been as high as 10.34 and as low as 6.32, with a median of 7.81.
Randstad Holding (RANJY - Free Report) may be another strong Staffing Firms stock to add to your shortlist. RANJY is a # 2 (Buy) stock with a Value grade of A.
Randstad Holding sports a P/B ratio of 1.93 as well; this compares to its industry's price-to-book ratio of 2.09. In the past 52 weeks, RANJY's P/B has been as high as 2.29, as low as 1.82, with a median of 2.05.
Value investors will likely look at more than just these metrics, but the above data helps show that Kelly Services and Randstad Holding are likely undervalued currently. And when considering the strength of its earnings outlook, KELYA and RANJY sticks out as one of the market's strongest value stocks.