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Should Value Investors Buy KT (KT) 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.

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 a variety of methods, including tried-and-true valuation metrics, to find these stocks.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is KT (KT - Free Report) . KT is currently holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock holds a P/E ratio of 7.24, while its industry has an average P/E of 9.94. KT's Forward P/E has been as high as 7.88 and as low as 5.88, with a median of 6.93, all within the past year.

Investors will also notice that KT has a PEG ratio of 0.64. 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 currently sports an average PEG of 0.75. KT's PEG has been as high as 2.58 and as low as 0.61, with a median of 0.99, all within the past year.

Another notable valuation metric for KT is its P/B ratio of 0.58. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. This company's current P/B looks solid when compared to its industry's average P/B of 0.95. Within the past 52 weeks, KT's P/B has been as high as 0.59 and as low as 0.41, with a median of 0.46.

These are just a handful of the figures considered in KT's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that KT is an impressive value stock right now.


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