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Should Value Investors Buy Korea Electric Power (KEP) Stock?
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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Korea Electric Power (KEP - Free Report) . KEP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.49, which compares to its industry's average of 13.36. Over the last 12 months, KEP's Forward P/E has been as high as 27.17 and as low as 6.97, with a median of 10.64.
Investors should also note that KEP holds a PEG ratio of 1.50. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. KEP's PEG compares to its industry's average PEG of 2.11. KEP's PEG has been as high as 5.43 and as low as 1.39, with a median of 2.13, all within the past year.
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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Should Value Investors Buy Korea Electric Power (KEP) Stock?
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Korea Electric Power (KEP - Free Report) . KEP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.49, which compares to its industry's average of 13.36. Over the last 12 months, KEP's Forward P/E has been as high as 27.17 and as low as 6.97, with a median of 10.64.
Investors should also note that KEP holds a PEG ratio of 1.50. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. KEP's PEG compares to its industry's average PEG of 2.11. KEP's PEG has been as high as 5.43 and as low as 1.39, with a median of 2.13, all within the past year.
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.