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Is Kubota (KUBTY) 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.

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.

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.

Kubota (KUBTY) is a stock many investors are watching right now. KUBTY is currently sporting a Zacks Rank of #2 (Buy), as well as a Value grade of A.

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We also note that KUBTY holds a PEG ratio of 0.95. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. KUBTY's industry currently sports an average PEG of 1.25. Over the past 52 weeks, KUBTY's PEG has been as high as 1.38 and as low as 0.87, with a median of 1.21.

Finally, investors should note that KUBTY has a P/CF ratio of 6.41. This metric takes into account a company's operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. KUBTY's current P/CF looks attractive when compared to its industry's average P/CF of 18.88. Within the past 12 months, KUBTY's P/CF has been as high as 9.44 and as low as 5.67, with a median of 6.29.

These are only a few of the key metrics included in Kubota'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, KUBTY looks like an impressive value stock at the moment.

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Zacks Investment Research