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.
Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader 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.
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.
KornFerry International (KFY – Free Report) is a stock many investors are watching right now. KFY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 12.74 right now. For comparison, its industry sports an average P/E of 15.62. Over the last 12 months, KFY’s Forward P/E has been as high as 15.53 and as low as 11.84, with a median of 13.73.
Finally, our model also underscores that KFY has a P/CF ratio of 10.96. This figure highlights a company’s operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company’s current P/CF looks solid when compared to its industry’s average P/CF of 12.26. Within the past 12 months, KFY’s P/CF has been as high as 15.39 and as low as 10.19, with a median of 13.77.
These are only a few of the key metrics included in KornFerry International’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, KFY looks like an impressive value stock at the moment.
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