Is Knoll (KNL) a Great Value Stock Right Now?
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.
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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
Luckily, Zacks has developed its own Style Scores system in an effort to find stocks with specific traits. Value investors will be interested in the system's "Value" category. Stocks with both "A" grades in the Value category and high Zacks Ranks are among the strongest value stocks on the market right now.
One stock to keep an eye on is Knoll (KNL). KNL is currently sporting a Zacks Rank of #2 (Buy) and an A for Value.
Investors should also recognize that KNL has a P/B ratio of 3.03. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 3.14. Over the past 12 months, KNL's P/B has been as high as 3.23 and as low as 2.07, with a median of 2.66.
Finally, investors should note that KNL has a P/CF ratio of 10.13. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. KNL's P/CF compares to its industry's average P/CF of 11.41. Within the past 12 months, KNL's P/CF has been as high as 10.62 and as low as 6.91, with a median of 9.20.
These are just a handful of the figures considered in Knoll'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 KNL is an impressive value stock right now.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.