Is KornFerry International (KFY) 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.
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.
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.
One company value investors might notice is KornFerry International (KFY). KFY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock is trading with a P/E ratio of 13.49, which compares to its industry's average of 16.08. Over the past 52 weeks, KFY's Forward P/E has been as high as 14.42 and as low as 9.28, with a median of 12.52.
Another notable valuation metric for KFY is its P/B ratio of 1.79. 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 2.33. KFY's P/B has been as high as 1.90 and as low as 1.38, with a median of 1.62, over the past year.
Randstad Holding (RANJY) may be another strong Staffing Firms stock to add to your shortlist. RANJY is a # 2 (Buy) stock with a Value grade of A.
Randstad Holding also has a P/B ratio of 1.96 compared to its industry's price-to-book ratio of 2.33. Over the past year, its P/B ratio has been as high as 2.37, as low as 1.82, with a median of 2.11.
Value investors will likely look at more than just these metrics, but the above data helps show that KornFerry International and Randstad Holding are likely undervalued currently. And when considering the strength of its earnings outlook, KFY and RANJY sticks out as one of the market's strongest value stocks.
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Korn/Ferry International (KFY) : Free Stock Analysis Report
Randstad Holding NV (RANJY) : Free Stock Analysis Report
