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Should Value Investors Buy KornFerry International (KFY) Stock?

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, 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.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is KornFerry International (KFY). KFY is currently holding a Zacks Rank of #2 (Buy) and a Value grade of A. The stock has a Forward P/E ratio of 13.31. This compares to its industry's average Forward P/E of 14.93. Over the past 52 weeks, KFY's Forward P/E has been as high as 15.67 and as low as 11.08, with a median of 13.52.

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We should also highlight that KFY has a P/B ratio of 1.99. 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 2.05. Over the past year, KFY's P/B has been as high as 2.13 and as low as 1.38, with a median of 1.81.

If you're looking for another solid Staffing Firms value stock, take a look at Randstad Holding (RANJY). RANJY is a # 2 (Buy) stock with a Value score of A.

Randstad Holding sports a P/B ratio of 1.91 as well; this compares to its industry's price-to-book ratio of 2.05. In the past 52 weeks, RANJY's P/B has been as high as 2.29, as low as 1.82, with a median of 2.05.

Value investors will likely look at more than just these metrics, but the above data helps show that KornFerry International and Randstad Holding are likely undervalued currently. And when considering the strength of its earnings outlook, KFY and RANJY sticks out as one of the market's strongest value stocks.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Korn/Ferry International (KFY) : Free Stock Analysis Report

Randstad Holding NV (RANJY) : Free Stock Analysis Report

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Zacks Investment Research