We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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.
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 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 to watch right now is Kemet (KEM - Free Report) . KEM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 4.96 right now. For comparison, its industry sports an average P/E of 14.87. Over the last 12 months, KEM's Forward P/E has been as high as 15.47 and as low as 4.31, with a median of 9.78.
Another valuation metric that we should highlight is KEM's P/B ratio of 2.06. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.45. KEM's P/B has been as high as 3.62 and as low as 1.78, with a median of 2.36, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. KEM has a P/S ratio of 0.8. This compares to its industry's average P/S of 1.28.
Finally, we should also recognize that KEM has a P/CF ratio of 7.59. 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. KEM's current P/CF looks attractive when compared to its industry's average P/CF of 10.11. Over the past year, KEM's P/CF has been as high as 14.64 and as low as 2.73, with a median of 6.82.
Value investors will likely look at more than just these metrics, but the above data helps show that Kemet is likely undervalued currently. And when considering the strength of its earnings outlook, KEM sticks out at as one of the market's strongest value stocks.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Is Kemet (KEM) Stock Undervalued 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.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. 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 to watch right now is Kemet (KEM - Free Report) . KEM is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 4.96 right now. For comparison, its industry sports an average P/E of 14.87. Over the last 12 months, KEM's Forward P/E has been as high as 15.47 and as low as 4.31, with a median of 9.78.
Another valuation metric that we should highlight is KEM's P/B ratio of 2.06. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.45. KEM's P/B has been as high as 3.62 and as low as 1.78, with a median of 2.36, over the past year.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. KEM has a P/S ratio of 0.8. This compares to its industry's average P/S of 1.28.
Finally, we should also recognize that KEM has a P/CF ratio of 7.59. 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. KEM's current P/CF looks attractive when compared to its industry's average P/CF of 10.11. Over the past year, KEM's P/CF has been as high as 14.64 and as low as 2.73, with a median of 6.82.
Value investors will likely look at more than just these metrics, but the above data helps show that Kemet is likely undervalued currently. And when considering the strength of its earnings outlook, KEM sticks out at as one of the market's strongest value stocks.