We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Are Investors Undervaluing KornFerry International (KFY) Right Now?
Read MoreHide Full Article
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is KornFerry International (KFY - Free Report) . KFY 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 13.53. This compares to its industry's average Forward P/E of 16.17. Over the past year, KFY's Forward P/E has been as high as 15.62 and as low as 11.30, with a median of 13.71.
Another valuation metric that we should highlight is KFY's P/B ratio of 2.01. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.02. KFY's P/B has been as high as 2.32 and as low as 1.70, with a median of 2.00, over the past year.
Finally, investors will want to recognize that KFY has a P/CF ratio of 11.47. 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 stock's P/CF looks attractive against its industry's average P/CF of 21.33. KFY's P/CF has been as high as 15.12 and as low as 9.53, with a median of 11.34, all within the past year.
If you're looking for another solid Staffing Firms value stock, take a look at RCM Technologies (RCMT - Free Report) . RCMT is a Zacks Rank of #2 (Buy) stock with a Value score of A.
RCM Technologies sports a P/B ratio of 5.37 as well; this compares to its industry's price-to-book ratio of 2.02. In the past 52 weeks, RCMT's P/B has been as high as 6.55, as low as 3.24, with a median of 4.90.
These figures are just a handful of the metrics value investors tend to look at, but they help show that KornFerry International and RCM Technologies are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KFY and RCMT feels like a great value stock at the moment.
View the Zacks #1 Rank List
Image: Bigstock
Are Investors Undervaluing KornFerry International (KFY) Right Now?
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is KornFerry International (KFY - Free Report) . KFY 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 13.53. This compares to its industry's average Forward P/E of 16.17. Over the past year, KFY's Forward P/E has been as high as 15.62 and as low as 11.30, with a median of 13.71.
Another valuation metric that we should highlight is KFY's P/B ratio of 2.01. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.02. KFY's P/B has been as high as 2.32 and as low as 1.70, with a median of 2.00, over the past year.
Finally, investors will want to recognize that KFY has a P/CF ratio of 11.47. 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 stock's P/CF looks attractive against its industry's average P/CF of 21.33. KFY's P/CF has been as high as 15.12 and as low as 9.53, with a median of 11.34, all within the past year.
If you're looking for another solid Staffing Firms value stock, take a look at RCM Technologies (RCMT - Free Report) . RCMT is a Zacks Rank of #2 (Buy) stock with a Value score of A.
RCM Technologies sports a P/B ratio of 5.37 as well; this compares to its industry's price-to-book ratio of 2.02. In the past 52 weeks, RCMT's P/B has been as high as 6.55, as low as 3.24, with a median of 4.90.
These figures are just a handful of the metrics value investors tend to look at, but they help show that KornFerry International and RCM Technologies are likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KFY and RCMT feels like a great value stock at the moment.