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Is Koppers (KOP) a Great Value Stock 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.

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.

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.

Koppers (KOP - Free Report) is a stock many investors are watching right now. KOP is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock has a Forward P/E ratio of 7.22. This compares to its industry's average Forward P/E of 11.68. Over the last 12 months, KOP's Forward P/E has been as high as 14.98 and as low as 6.96, with a median of 10.30.

We also note that KOP holds a PEG ratio of 0.40. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. KOP's industry has an average PEG of 1.05 right now. Over the last 12 months, KOP's PEG has been as high as 0.83 and as low as 0.39, with a median of 0.55.

Finally, we should also recognize that KOP has a P/CF ratio of 9.31. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. This stock's P/CF looks attractive against its industry's average P/CF of 12.37. Over the past year, KOP's P/CF has been as high as 13.42 and as low as 8.96, with a median of 10.82.

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


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