The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.
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 stock to keep an eye on is Kamada (KMDA). KMDA is currently sporting a Zacks Rank #2 (Buy), as well as a Value grade of A. The stock holds a P/E ratio of 16.85, while its industry has an average P/E of 37.63. Over the past 52 weeks, KMDA's Forward P/E has been as high as 26.70 and as low as 16.67, with a median of 20.60.
Investors should also recognize that KMDA has a P/B ratio of 1.53. 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 stock's P/B looks attractive against its industry's average P/B of 3.47. Within the past 52 weeks, KMDA's P/B has been as high as 1.85 and as low as 1.16, with a median of 1.53.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a preferred metric because revenue can't really be manipulated, so sales are often a truer performance indicator. KMDA has a P/S ratio of 2.26. This compares to its industry's average P/S of 6.44.
Value investors will likely look at more than just these metrics, but the above data helps show that Kamada is likely undervalued currently. And when considering the strength of its earnings outlook, KMDA sticks out as one of the market's strongest value stocks.
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Kamada Ltd. (KMDA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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