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Is Kamada (KMDA) 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.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One company value investors might notice is Kamada (KMDA - Free Report) . KMDA is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 21.4 right now. For comparison, its industry sports an average P/E of 37.33. Over the last 12 months, KMDA's Forward P/E has been as high as 26.70 and as low as 17.10, with a median of 20.42.

We should also highlight that KMDA has a P/B ratio of 1.77. 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. KMDA's current P/B looks attractive when compared to its industry's average P/B of 3.12. Over the past 12 months, KMDA's P/B has been as high as 1.85 and as low as 1.11, with a median of 1.37.

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. KMDA has a P/S ratio of 2.71. This compares to its industry's average P/S of 5.47.

These are just a handful of the figures considered in Kamada'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 KMDA is an impressive value stock right now.


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