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

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Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

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 fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

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.

KDDI Corporation Unsponsored ADR (KDDIY - Free Report) is a stock many investors are watching right now. KDDIY is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 10.88 right now. For comparison, its industry sports an average P/E of 12.24. KDDIY's Forward P/E has been as high as 11.88 and as low as 9.37, with a median of 11.18, all within the past year.

Another valuation metric that we should highlight is KDDIY's P/B ratio of 1.55. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 2.23. KDDIY's P/B has been as high as 1.65 and as low as 1.27, with a median of 1.48, over the past year.

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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