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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is KT (KT - Free Report) . KT is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.37 right now. For comparison, its industry sports an average P/E of 11.10. Over the past year, KT's Forward P/E has been as high as 18.18 and as low as 6.09, with a median of 7.19.
KT is also sporting a PEG ratio of 0.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KT's PEG compares to its industry's average PEG of 0.53. Within the past year, KT's PEG has been as high as 1.13 and as low as 0.16, with a median of 0.39.
Another notable valuation metric for KT is its P/B ratio of 0.82. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.20. Over the past year, KT's P/B has been as high as 0.86 and as low as 0.52, with a median of 0.69.
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. KT has a P/S ratio of 0.55. This compares to its industry's average P/S of 1.19.
Finally, investors will want to recognize that KT has a P/CF ratio of 3.11. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. KT's current P/CF looks attractive when compared to its industry's average P/CF of 4.73. Over the past 52 weeks, KT's P/CF has been as high as 3.27 and as low as 1.68, with a median of 2.57.
These are just a handful of the figures considered in KT'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 KT is an impressive value stock right now.
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Are Investors Undervaluing KT (KT) Right Now?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 to watch right now is KT (KT - Free Report) . KT is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 8.37 right now. For comparison, its industry sports an average P/E of 11.10. Over the past year, KT's Forward P/E has been as high as 18.18 and as low as 6.09, with a median of 7.19.
KT is also sporting a PEG ratio of 0.18. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KT's PEG compares to its industry's average PEG of 0.53. Within the past year, KT's PEG has been as high as 1.13 and as low as 0.16, with a median of 0.39.
Another notable valuation metric for KT is its P/B ratio of 0.82. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 1.20. Over the past year, KT's P/B has been as high as 0.86 and as low as 0.52, with a median of 0.69.
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. KT has a P/S ratio of 0.55. This compares to its industry's average P/S of 1.19.
Finally, investors will want to recognize that KT has a P/CF ratio of 3.11. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. KT's current P/CF looks attractive when compared to its industry's average P/CF of 4.73. Over the past 52 weeks, KT's P/CF has been as high as 3.27 and as low as 1.68, with a median of 2.57.
These are just a handful of the figures considered in KT'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 KT is an impressive value stock right now.