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Should Value Investors Buy Korea Electric Power (KEP) Stock?

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Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 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 Korea Electric Power (KEP - Free Report) . KEP is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock is trading with a P/E ratio of 8.93, which compares to its industry's average of 13.60. Over the last 12 months, KEP's Forward P/E has been as high as 33.37 and as low as 8.71, with a median of 11.85.

Investors should also note that KEP holds a PEG ratio of 1.79. 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. KEP's industry currently sports an average PEG of 2.14. Over the past 52 weeks, KEP's PEG has been as high as 6.67 and as low as 1.74, with a median of 2.37.

These are only a few of the key metrics included in Korea Electric Power'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, KEP looks like an impressive value stock at the moment.


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