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Are Investors Undervaluing Kamada (KMDA) 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of 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 Kamada (KMDA - Free Report) . KMDA is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 16.85. This compares to its industry's average Forward P/E of 39.05. Over the past 52 weeks, KMDA's Forward P/E has been as high as 26.70 and as low as 16.67, with a median of 20.60.

Investors should also recognize that KMDA has a P/B ratio of 1.53. 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 solid versus its industry's average P/B of 3.42. Over the past year, KMDA's P/B has been as high as 1.85 and as low as 1.16, with a median of 1.53.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's 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. KMDA has a P/S ratio of 2.29. This compares to its industry's average P/S of 6.65.

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


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