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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 stock to keep an eye on is KT (KT - Free Report) . KT is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.78, while its industry has an average P/E of 11.15. 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 7.32.
Another notable valuation metric for KT is its P/B ratio of 0.76. 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 2.23. Over the past year, KT's P/B has been as high as 0.83 and as low as 0.57, with a median of 0.72.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. KT has a P/S ratio of 0.51. This compares to its industry's average P/S of 1.37.
Finally, investors will want to recognize that KT has a P/CF ratio of 2.68. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 3.44. Over the past year, KT's P/CF has been as high as 3.11 and as low as 1.85, with a median of 2.69.
Value investors will likely look at more than just these metrics, but the above data helps show that KT is likely undervalued currently. And when considering the strength of its earnings outlook, KT sticks out as one of the market's strongest value stocks.
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Is KT (KT) 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.
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 stock to keep an eye on is KT (KT - Free Report) . KT is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 7.78, while its industry has an average P/E of 11.15. 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 7.32.
Another notable valuation metric for KT is its P/B ratio of 0.76. 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 2.23. Over the past year, KT's P/B has been as high as 0.83 and as low as 0.57, with a median of 0.72.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. KT has a P/S ratio of 0.51. This compares to its industry's average P/S of 1.37.
Finally, investors will want to recognize that KT has a P/CF ratio of 2.68. 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. This company's current P/CF looks solid when compared to its industry's average P/CF of 3.44. Over the past year, KT's P/CF has been as high as 3.11 and as low as 1.85, with a median of 2.69.
Value investors will likely look at more than just these metrics, but the above data helps show that KT is likely undervalued currently. And when considering the strength of its earnings outlook, KT sticks out as one of the market's strongest value stocks.