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Are Investors Undervaluing Kirin (KNBWY) Right Now?

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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.

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 Kirin (KNBWY - Free Report) . KNBWY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with P/E ratio of 12.90 right now. For comparison, its industry sports an average P/E of 19.70. KNBWY's Forward P/E has been as high as 14.85 and as low as 9.66, with a median of 12.58, all within the past year.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a prefered metric because revenue can't really be manipulated, so sales are often a truer performance indicator. KNBWY has a P/S ratio of 0.86. This compares to its industry's average P/S of 1.77.

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


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