Is KornFerry International (KFY) Stock Undervalued Right Now?
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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One company to watch right now is KornFerry International (KFY). KFY 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 10.07. This compares to its industry's average Forward P/E of 10.70. KFY's Forward P/E has been as high as 17.57 and as low as 8.94, with a median of 11.96, all within the past year.
We should also highlight that KFY has a P/B ratio of 1.82. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks attractive against its industry's average P/B of 2.49. Within the past 52 weeks, KFY's P/B has been as high as 3.06 and as low as 1.80, with a median of 2.33.
Finally, our model also underscores that KFY has a P/CF ratio of 7.21. 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. KFY's P/CF compares to its industry's average P/CF of 7.80. Within the past 12 months, KFY's P/CF has been as high as 14.64 and as low as 7.03, with a median of 9.67.
Investors could also keep in mind RCM Technologies (RCMT), an Staffing Firms stock with a Zacks Rank of # 2 (Buy) and Value grade of A.
Furthermore, RCM Technologies holds a P/B ratio of 4.49 and its industry's price-to-book ratio is 2.49. RCMT's P/B has been as high as 9.40, as low as 2.37, with a median of 3.44 over the past 12 months.
These are only a few of the key metrics included in KornFerry International and RCM Technologies strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, KFY and RCMT look like an impressive value stock at the moment.
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KornFerry International (KFY) : Free Stock Analysis Report
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