Is Komatsu (KMTUY) Stock Undervalued Right Now?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental analysis to find companies that they believe are undervalued at their current share price levels.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Komatsu (KMTUY). KMTUY is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 9.93, while its industry has an average P/E of 15.52. KMTUY's Forward P/E has been as high as 12.34 and as low as 8.29, with a median of 10.05, all within the past year.

Finally, we should also recognize that KMTUY has a P/CF ratio of 5.65. 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. KMTUY's current P/CF looks attractive when compared to its industry's average P/CF of 11.05. KMTUY's P/CF has been as high as 9.44 and as low as 4.72, with a median of 7.07, all within the past year.

If you're looking for another solid Manufacturing - Construction and Mining value stock, take a look at Terex (TEX). TEX is a # 2 (Buy) stock with a Value score of A.

Terex is currently trading with a Forward P/E ratio of 9 while its PEG ratio sits at 0.49. Both of the company's metrics compare favorably to its industry's average P/E of 15.52 and average PEG ratio of 1.12.

TEX's price-to-earnings ratio has been as high as 16.48 and as low as 6.36, with a median of 8.38, while its PEG ratio has been as high as 0.57 and as low as 0.36, with a median of 0.45, all within the past year.

Terex also has a P/B ratio of 2.78 compared to its industry's price-to-book ratio of 5.90. Over the past year, its P/B ratio has been as high as 3.37, as low as 1.73, with a median of 2.28.

These are only a few of the key metrics included in Komatsu and Terex strong Value grade, but they help show that the stocks are likely undervalued right now. When factoring in the strength of its earnings outlook, KMTUY and TEX look like an impressive value stock at the moment.

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Komatsu Ltd. (KMTUY) : Free Stock Analysis Report
 
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