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Is Kemper (KMPR) 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 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 Kemper (KMPR - Free Report) . KMPR is currently holding a Zacks Rank #2 (Buy) and a Value grade of A.

Another valuation metric that we should highlight is KMPR's P/B ratio of 1.38. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.65. Over the past year, KMPR's P/B has been as high as 1.67 and as low as 1.21, with a median of 1.48.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. KMPR has a P/S ratio of 0.88. This compares to its industry's average P/S of 1.07.

Finally, investors should note that KMPR has a P/CF ratio of 10.24. 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. KMPR's current P/CF looks attractive when compared to its industry's average P/CF of 10.48. KMPR's P/CF has been as high as 41.03 and as low as -273.38, with a median of 11.97, all within the past year.

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


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