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Is KT Corp. (KT) Stock Undervalued Right Now?

Zacks Equity Research
Twilio Inc. (TWLO) possesses the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

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.

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.

One company value investors might notice is KT Corp. (KT). KT is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 9.50 right now. For comparison, its industry sports an average P/E of 11.79. Over the past 52 weeks, KT's Forward P/E has been as high as 12.98 and as low as 8.95, with a median of 10.19.

Investors should also note that KT holds a PEG ratio of 0.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. KT's industry has an average PEG of 0.68 right now. Within the past year, KT's PEG has been as high as 1.23 and as low as 0.65, with a median of 0.97.

These figures are just a handful of the metrics value investors tend to look at, but they help show that KT Corp. Is likely being undervalued right now. Considering this, as well as the strength of its earnings outlook, KT feels like a great value stock at the moment.


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