Is Kion Group (KIGRY) 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.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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.
Kion Group (KIGRY) is a stock many investors are watching right now. KIGRY is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 17.85, while its industry has an average P/E of 26.86. Over the past 52 weeks, KIGRY's Forward P/E has been as high as 19.07 and as low as 9.39, with a median of 13.54.
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. KIGRY has a P/S ratio of 0.78. This compares to its industry's average P/S of 1.27.
These figures are just a handful of the metrics value investors tend to look at, but they help show that Kion Group is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KIGRY feels like a great value stock at the moment.
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This article originally published on Zacks Investment Research (zacks.com).
Source Zacks-com
