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Are Investors Undervaluing KDDI Corporation Unsponsored ADR (KDDIY) Right Now?

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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

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 value investors might notice is KDDI Corporation Unsponsored ADR (KDDIY - Free Report) . KDDIY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock holds a P/E ratio of 11.35, while its industry has an average P/E of 11.70. 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 11.09.

Another notable valuation metric for KDDIY is its P/B ratio of 1.55. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. KDDIY's current P/B looks attractive when compared to its industry's average P/B of 2.20. Over the past year, KDDIY's P/B has been as high as 1.56 and as low as 1.23, with a median of 1.46.

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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