Is Kforce (KFRC) Stock Undervalued Right Now?

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore 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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

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 Kforce (KFRC). KFRC is currently sporting a Zacks Rank #2 (Buy) and an A for Value. The stock is trading with P/E ratio of 13.58 right now. For comparison, its industry sports an average P/E of 16.70. Over the past 52 weeks, KFRC's Forward P/E has been as high as 21.76 and as low as 13.37, with a median of 17.72.

Finally, investors should note that KFRC has a P/CF ratio of 10.73. 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. KFRC's current P/CF looks attractive when compared to its industry's average P/CF of 22.90. Over the past 52 weeks, KFRC's P/CF has been as high as 21.09 and as low as 10.55, with a median of 16.22.

Value investors will likely look at more than just these metrics, but the above data helps show that Kforce is likely undervalued currently. And when considering the strength of its earnings outlook, KFRC sticks out as one of the market's strongest value stocks.

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This article originally published on Zacks Investment Research (zacks.com).

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