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Should Value Investors Buy Kirin (KNBWY) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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.

Kirin (KNBWY - Free Report) is a stock many investors are watching right now. KNBWY 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 11.9 right now. For comparison, its industry sports an average P/E of 13.80. Over the past 52 weeks, KNBWY's Forward P/E has been as high as 13.87 and as low as 10.54, with a median of 12.02.

Investors should also note that KNBWY holds a PEG ratio of 0.97. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. KNBWY's industry currently sports an average PEG of 2.20. Within the past year, KNBWY's PEG has been as high as 1.08 and as low as 0.86, with a median of 0.96.

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. KNBWY has a P/S ratio of 0.73. This compares to its industry's average P/S of 1.52.

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


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