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Should Value Investors Buy KT (KT) 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.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

KT (KT - Free Report) is a stock many investors are watching right now. KT is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value.

Another notable valuation metric for KT is its P/B ratio of 0.44. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. KT's current P/B looks attractive when compared to its industry's average P/B of 1.26. Over the past year, KT's P/B has been as high as 0.59 and as low as 0.39, with a median of 0.43.

Finally, our model also underscores that KT has a P/CF ratio of 1.70. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. KT's P/CF compares to its industry's average P/CF of 3.49. Within the past 12 months, KT's P/CF has been as high as 2.26 and as low as 1.56, with a median of 1.73.

Another great Wireless Non-US stock you could consider is TeliaSonera (TLSNY - Free Report) , which is a # 2 (Buy) stock with a Value Score of A.

Shares of TeliaSonera are currently trading at a forward earnings multiple of 24.26 and a PEG ratio of 0.46 compared to its industry's P/E and PEG ratios of 6.08 and 0.68, respectively.

Over the past year, TLSNY's P/E has been as high as 24.26, as low as 14.40, with a median of 16.34; its PEG ratio has been as high as 0.89, as low as 0.26, with a median of 2.02 during the same time period.

TeliaSonera sports a P/B ratio of 1.69 as well; this compares to its industry's price-to-book ratio of 1.26. In the past 52 weeks, TLSNY's P/B has been as high as 1.75, as low as 1.26, with a median of 1.52.

These are only a few of the key metrics included in KT and TeliaSonera strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, KT and TLSNY look like an impressive value stock at the moment.


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