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Should Value Investors Buy KT Corp. (KT) Stock?

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While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company to watch right now is KT Corp. (KT - Free Report) . KT is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 9.22. This compares to its industry's average Forward P/E of 11.46. 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 9.74.

We also note that KT holds a PEG ratio of 0.80. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. KT's industry has an average PEG of 0.97 right now. KT's PEG has been as high as 1.06 and as low as 0.60, with a median of 0.85, all within the past year.

These are only a few of the key metrics included in KT Corp.'s strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, KT looks like an impressive value stock at the moment.


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