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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Kennametal (KMT - Free Report) is a stock many investors are watching right now. KMT is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 17.65, which compares to its industry's average of 18.35. Over the past year, KMT's Forward P/E has been as high as 20.58 and as low as 13.23, with a median of 16.32.
Another valuation metric that we should highlight is KMT's P/B ratio of 1.5. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.58. Over the past year, KMT's P/B has been as high as 1.85 and as low as 1.06, with a median of 1.47.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. KMT has a P/S ratio of 0.8. This compares to its industry's average P/S of 1.48.
Finally, we should also recognize that KMT has a P/CF ratio of 7.96. 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. KMT's P/CF compares to its industry's average P/CF of 17.43. Within the past 12 months, KMT's P/CF has been as high as 10.33 and as low as 5.56, with a median of 7.92.
These are only a few of the key metrics included in Kennametal'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, KMT looks like an impressive value stock at the moment.
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Is Kennametal (KMT) Stock Undervalued Right Now?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Kennametal (KMT - Free Report) is a stock many investors are watching right now. KMT is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 17.65, which compares to its industry's average of 18.35. Over the past year, KMT's Forward P/E has been as high as 20.58 and as low as 13.23, with a median of 16.32.
Another valuation metric that we should highlight is KMT's P/B ratio of 1.5. Investors use the P/B ratio to look at a stock's market value versus its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 2.58. Over the past year, KMT's P/B has been as high as 1.85 and as low as 1.06, with a median of 1.47.
Value investors also use the P/S ratio. The P/S ratio is calculated as price divided by sales. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. KMT has a P/S ratio of 0.8. This compares to its industry's average P/S of 1.48.
Finally, we should also recognize that KMT has a P/CF ratio of 7.96. 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. KMT's P/CF compares to its industry's average P/CF of 17.43. Within the past 12 months, KMT's P/CF has been as high as 10.33 and as low as 5.56, with a median of 7.92.
These are only a few of the key metrics included in Kennametal'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, KMT looks like an impressive value stock at the moment.