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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 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.

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 holds a P/E ratio of 10.54, while its industry has an average P/E of 12.20. Over the past 52 weeks, KDDIY's Forward P/E has been as high as 11.88 and as low as 9.37, with a median of 11.17.

Another notable valuation metric for KDDIY is its P/B ratio of 1.51. 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 solid versus its industry's average P/B of 2.23. Over the past year, KDDIY's P/B has been as high as 1.65 and as low as 1.32, with a median of 1.49.

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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