Back to top

Image: Bigstock

Should Value Investors Buy Kubota (KUBTY) Stock?

Read MoreHide Full Article

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, 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.

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.

Kubota (KUBTY - Free Report) is a stock many investors are watching right now. KUBTY is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with P/E ratio of 9.56 right now. For comparison, its industry sports an average P/E of 15.59. KUBTY's Forward P/E has been as high as 14.68 and as low as 9.56, with a median of 12.57, all within the past year.

Finally, investors should note that KUBTY has a P/CF ratio of 7.91. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 20.39. KUBTY's P/CF has been as high as 8.78 and as low as 5.69, with a median of 7.31, 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 Kubota is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KUBTY feels like a great value stock at the moment.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Kubota Corp. (KUBTY) - free report >>

Published in