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Is FS KKR Capital Corp. (FSK) a Great Value Stock 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is FS KKR Capital Corp. (FSK - Free Report) . FSK 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 8.34 right now. For comparison, its industry sports an average P/E of 8.52. Over the last 12 months, FSK's Forward P/E has been as high as 8.49 and as low as 6.19, with a median of 7.29.

Another valuation metric that we should highlight is FSK's P/B ratio of 0.91. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 0.99. FSK's P/B has been as high as 0.93 and as low as 0.75, with a median of 0.83, over the past year.

Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. FSK has a P/S ratio of 3.45. This compares to its industry's average P/S of 3.54.

These are just a handful of the figures considered in FS KKR Capital Corp.'s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that FSK is an impressive value stock right now.


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