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.
Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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.
Kamada (KMDA) is a stock many investors are watching right now. KMDA is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A. The stock is trading with a P/E ratio of 20.75, which compares to its industry's average of 37.10. KMDA's Forward P/E has been as high as 26.70 and as low as 17, with a median of 19.85, all within the past year.
Another valuation metric that we should highlight is KMDA's P/B ratio of 1.57. 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 3.04. Over the past year, KMDA's P/B has been as high as 1.85 and as low as 1.11, with a median of 1.35.
Value investors also use the P/S ratio. The P/S ratio is is calculated as price divided by sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. KMDA has a P/S ratio of 2.35. This compares to its industry's average P/S of 5.21.
These are only a few of the key metrics included in Kamada's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, KMDA looks like an impressive value stock at the moment.
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Kamada Ltd. (KMDA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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