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Should Value Investors Buy Kforce (KFRC) Stock?

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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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

Kforce (KFRC - Free Report) is a stock many investors are watching right now. KFRC is currently sporting a Zacks Rank #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 13.58, while its industry has an average P/E of 16.13. Over the last 12 months, KFRC's Forward P/E has been as high as 21.76 and as low as 13.37, with a median of 17.72.

Finally, investors will want to recognize that KFRC has a P/CF ratio of 10.73. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 19.83. Within the past 12 months, KFRC's P/CF has been as high as 21.09 and as low as 10.55, with a median of 16.22.

Value investors will likely look at more than just these metrics, but the above data helps show that Kforce is likely undervalued currently. And when considering the strength of its earnings outlook, KFRC sticks out as one of the market's strongest value stocks.

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