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Should Value Investors Buy KDDI Corporation Unsponsored ADR (KDDIY) 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 KDDI Corporation Unsponsored ADR (KDDIY - Free Report) . KDDIY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock has a Forward P/E ratio of 11.25. This compares to its industry's average Forward P/E of 11.46. Over the past 52 weeks, KDDIY's Forward P/E has been as high as 11.88 and as low as 10.28, with a median of 11.04.

Another notable valuation metric for KDDIY is its P/B ratio of 1.54. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.14. Within the past 52 weeks, KDDIY's P/B has been as high as 1.56 and as low as 1.23, with a median of 1.45.

These are only a few of the key metrics included in KDDI Corporation Unsponsored ADR'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, KDDIY looks like an impressive value stock at the moment.


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