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Should Value Investors Buy Kaiser Aluminum (KALU) Stock?
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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, 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 company to watch right now is Kaiser Aluminum (KALU - Free Report) . KALU is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 13.27, while its industry has an average P/E of 18.05. KALU's Forward P/E has been as high as 26.64 and as low as 11.53, with a median of 14.12, all within the past year.
We should also highlight that KALU has a P/B ratio of 1.61. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.78. Within the past 52 weeks, KALU's P/B has been as high as 2.08 and as low as 1.07, with a median of 1.69.
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. KALU has a P/S ratio of 0.5. This compares to its industry's average P/S of 1.1.
Finally, we should also recognize that KALU has a P/CF ratio of 7.29. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. KALU's current P/CF looks attractive when compared to its industry's average P/CF of 12.95. Within the past 12 months, KALU's P/CF has been as high as 8.75 and as low as 4.85, with a median of 7.04.
These are just a handful of the figures considered in Kaiser Aluminum'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 KALU is an impressive value stock right now.
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Should Value Investors Buy Kaiser Aluminum (KALU) Stock?
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, 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 company to watch right now is Kaiser Aluminum (KALU - Free Report) . KALU is currently sporting a Zacks Rank #1 (Strong Buy) and an A for Value. The stock holds a P/E ratio of 13.27, while its industry has an average P/E of 18.05. KALU's Forward P/E has been as high as 26.64 and as low as 11.53, with a median of 14.12, all within the past year.
We should also highlight that KALU has a P/B ratio of 1.61. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.78. Within the past 52 weeks, KALU's P/B has been as high as 2.08 and as low as 1.07, with a median of 1.69.
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. KALU has a P/S ratio of 0.5. This compares to its industry's average P/S of 1.1.
Finally, we should also recognize that KALU has a P/CF ratio of 7.29. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. KALU's current P/CF looks attractive when compared to its industry's average P/CF of 12.95. Within the past 12 months, KALU's P/CF has been as high as 8.75 and as low as 4.85, with a median of 7.04.
These are just a handful of the figures considered in Kaiser Aluminum'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 KALU is an impressive value stock right now.