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Are Investors Undervaluing Kontoor Brands (KTB) Right Now?
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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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Kontoor Brands (KTB - Free Report) is a stock many investors are watching right now. KTB is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 14.39. This compares to its industry's average Forward P/E of 16.40. Over the last 12 months, KTB's Forward P/E has been as high as 17.98 and as low as 9.84, with a median of 13.83.
Finally, we should also recognize that KTB has a P/CF ratio of 15.30. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. KTB's P/CF compares to its industry's average P/CF of 21.92. Over the past year, KTB's P/CF has been as high as 18.58 and as low as 10.43, with a median of 14.85.
These are only a few of the key metrics included in Kontoor Brands's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, KTB looks like an impressive value stock at the moment.
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Are Investors Undervaluing Kontoor Brands (KTB) 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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.
Kontoor Brands (KTB - Free Report) is a stock many investors are watching right now. KTB is currently holding a Zacks Rank #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 14.39. This compares to its industry's average Forward P/E of 16.40. Over the last 12 months, KTB's Forward P/E has been as high as 17.98 and as low as 9.84, with a median of 13.83.
Finally, we should also recognize that KTB has a P/CF ratio of 15.30. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. KTB's P/CF compares to its industry's average P/CF of 21.92. Over the past year, KTB's P/CF has been as high as 18.58 and as low as 10.43, with a median of 14.85.
These are only a few of the key metrics included in Kontoor Brands's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, KTB looks like an impressive value stock at the moment.