KT (KT) Stock

KT Corporation (NYSE:KT ) Q2 2024 Results Conference Call November 7, 2024 8:00 PM ET Company Participants Young-Kyun Yoon - IRO Min Jang - Chief Financial Officer Conference Call Participants Hoi Jae Kim - Daishin Securities Joon-Sop Kim - KB Securities Eun Jung Shin - DB Financial and Investment Securities Operator Good morning, and good evening. Thank you all for joining this conference call.

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

KT Corp. (KT) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).

Does KT Corp. (KT) have what it takes to be a top stock pick for momentum investors? Let's find out.

KT Corporation offers a modest 2% dividend yield, with inconsistent payments influenced by the South Korean Won to US Dollar exchange rate. The stock trades at a significant discount to book value (0.53 price/book ratio), but faces intense competition from SK Telecom and LG U-plus. KT is a mature company with limited growth prospects, trading at a P/E ratio of 10.30, and narrow revenue growth is expected.

PPC, STRL and KT made it to the Zacks Rank #1 (Strong Buy) growth stocks list on August 19, 2024.

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.