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

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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.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

KDDI Corporation Unsponsored ADR (KDDIY - Free Report) is a stock many investors are watching right now. KDDIY is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 11.32. This compares to its industry's average Forward P/E of 12.50. Over the last 12 months, KDDIY's Forward P/E has been as high as 11.88 and as low as 10.28, with a median of 11.12.

Another valuation metric that we should highlight is KDDIY's P/B ratio of 1.58. 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 stock's P/B looks attractive against its industry's average P/B of 2.23. Over the past 12 months, KDDIY's P/B has been as high as 1.59 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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