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Are Investors Undervaluing KT Corp. (KT) 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.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.

One company to watch right now is KT Corp. (KT - Free Report) . KT 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 8.64. This compares to its industry's average Forward P/E of 12.12. KT's Forward P/E has been as high as 10.23 and as low as 5.48, with a median of 9.28, all within the past year.

We also note that KT holds a PEG ratio of 0.78. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. KT's industry has an average PEG of 1.06 right now. KT's PEG has been as high as 0.90 and as low as 0.53, with a median of 0.82, all within the past year.

These figures are just a handful of the metrics value investors tend to look at, but they help show that KT Corp. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KT feels like a great value stock at the moment.


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