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Kennametal (KMT) Earnings Momentum Keeps Undervalued Narrative In Focus

Simply Wall St · 2d ago

Kennametal (KMT) is scheduled to release its next earnings report on November 4, 2026, following two consecutive quarters of results that exceeded analyst expectations and drawing renewed attention to the stock’s current setup.

Recent trading tells a mixed story for Kennametal. The share price has fallen 4.9% over the last day and declined 16.0% across the past 90 days, yet the 1 year total shareholder return of 33.3% and 3 year total shareholder return of 42.0% point to momentum that has been built over a longer stretch.

Scan how Kennametal’s setup compares with other industrials showing similar earnings momentum by running them through the 29 high quality undervalued stocks filter.

Bulls point to Kennametal’s recent earnings beats and long term shareholder returns, while bears focus on the weaker multi year share performance and profit trend. Which side does the current valuation actually support next?

Most Popular Narrative: 9% Undervalued

Kennametal last closed at $29.59, while the most followed narrative pegs fair value closer to $32.43. As a result, the story leans toward undervaluation even after a strong multi year return profile.

The company is actively rightsizing capacity and executing structural cost reductions including plant closures and workforce optimization, which are projected to produce US$125 million in run rate savings by fiscal 2028. Together with the US$27 million of restructuring savings already realized in fiscal 2026 and the reiterated US$110 million savings goal by fiscal 2027, these initiatives could provide multi year support for net margins and earnings.

See why 4 investors see Kennametal as 9% undervalued.

Result: Fair Value of $32.43 (UNDERVALUED)

Still, the narrative around Kennametal could flip quickly if tungsten pricing benefits unwind faster than expected or if key end markets like energy and transportation soften again.

Find out about the key risks to this Kennametal narrative.

Next Steps

Mixed messages on Kennametal can be confusing, so review the full risk and reward scorecard yourself and pressure test the story against the 3 key rewards and 4 important warning signs.

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