KT (KT) Stock

KT Corporation (NYSE:KT) will hold its Q2 2024 Results Conference Call on November 7, 2024, at 8:00 PM ET. The call will feature company representatives Young-Kyun Yoon, the Investor Relations Officer, and Min Jang, the Chief Financial Officer. Participants from various securities firms, including Hoi Jae Kim from Daishin Securities and Joon-Sop Kim from KB Securities, will also be present.

The quick expansion of 5G and strong wireless growth are expected to support the Zacks Wireless Non-US industry, even with some challenges in the short term. Companies like ORAN, SKM, and KT are in a good position to benefit from the increasing need for smooth connectivity solutions.

KT Corp. (KT) could see an increase in its stock price due to rising confidence in its earnings potential, as indicated by its upgrade to a Zacks Rank #1 (Strong Buy).

Is KT Corp. (KT) a strong choice for momentum investors? Let's explore this question.

KT Corporation provides a small dividend yield of 2%, but its payments can vary due to the exchange rate between the South Korean Won and the US Dollar. The stock is priced much lower than its book value, with a price/book ratio of 0.53, yet it competes strongly with SK Telecom and LG U-plus. As a mature company, KT has limited opportunities for growth, currently trading at a P/E ratio of 10.30, and only slight revenue growth is anticipated.

On August 19, 2024, PPC, STRL, and KT were included in the Zacks Rank #1 (Strong Buy) list of growth stocks.

The key positive factors for KT include favorable shareholder capital return expectations, the latest collaboration with Microsoft, and the improvement in the competitive dynamics for its telecommunications business. KT Corporation's valuations are undemanding as evidenced by its low-single digit forward EV/EBITDA multiple. I raise my rating for KT stock from a Hold to a Buy, following an analysis of the stock's valuation metrics and positive re-rating drivers.

The fast-track 5G rollout and solid wireless traction should help the Zacks Wireless Non-US industry thrive despite short-term headwinds. TIMB, SKM and KT are well-positioned to make the most of the demand for seamless connectivity solutions.

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.