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.
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 tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.
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 KT Corp. (KT - Free Report) . KT is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock has a Forward P/E ratio of 9.94. This compares to its industry's average Forward P/E of 11.69. Over the past 52 weeks, KT's Forward P/E has been as high as 11.18 and as low as 8.55, with a median of 9.79.
Investors will also notice that KT has a PEG ratio of 0.86. 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. KT's industry has an average PEG of 0.99 right now. KT's PEG has been as high as 1.06 and as low as 0.60, with a median of 0.86, all within the past year.
Investors should also recognize that KT has a P/B ratio of 0.43. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. KT's current P/B looks attractive when compared to its industry's average P/B of 0.93. Over the past 12 months, KT's P/B has been as high as 0.57 and as low as 0.40, with a median of 0.45.
These figures are just a handful of the metrics value investors tend to look at, but they help show that KT Corp. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KT feels like a great value stock at the moment.