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Is Koppers (KOP) Stock Undervalued 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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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 value investors might notice is Koppers (KOP - Free Report) . KOP is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 7.35, while its industry has an average P/E of 12.81. Over the past 52 weeks, KOP's Forward P/E has been as high as 14.98 and as low as 7.34, with a median of 10.44.

Investors will also notice that KOP has a PEG ratio of 0.41. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. KOP's PEG compares to its industry's average PEG of 1.17. Within the past year, KOP's PEG has been as high as 0.83 and as low as 0.41, with a median of 0.56.

Finally, investors should note that KOP has a P/CF ratio of 9.44. 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 15.11. Over the past 52 weeks, KOP's P/CF has been as high as 13.42 and as low as 9.15, with a median of 10.85.

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




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