Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Dell Technologies . DVMT is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 16.51, while its industry has an average P/E of 20.29. Over the last 12 months, DVMT's Forward P/E has been as high as 16.69 and as low as 11.96, with a median of 13.29.
Investors should also note that DVMT holds a PEG ratio of 1.82. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DVMT's industry currently sports an average PEG of 1.83. Within the past year, DVMT's PEG has been as high as 1.83 and as low as 1.32, with a median of 1.46.
Another notable valuation metric for DVMT is its P/B ratio of 5.33. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 12.80. Over the past year, DVMT's P/B has been as high as 5.38 and as low as 3.20, with a median of 4.17.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DVMT has a P/S ratio of 0.91. This compares to its industry's average P/S of 2.37.
Finally, investors will want to recognize that DVMT has a P/CF ratio of 10.37. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. DVMT's P/CF compares to its industry's average P/CF of 34.85. Over the past year, DVMT's P/CF has been as high as 10.48 and as low as 7.24, with a median of 8.91.
These are just a handful of the figures considered in Dell Technologies's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DVMT is an impressive value stock right now.
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Should Value Investors Buy Dell Technologies (DVMT) Stock?
Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.
Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large.
On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the "Value" category. Stocks with high Zacks Ranks and "A" grades for Value will be some of the highest-quality value stocks on the market today.
One stock to keep an eye on is Dell Technologies . DVMT is currently sporting a Zacks Rank of #1 (Strong Buy), as well as an A grade for Value. The stock holds a P/E ratio of 16.51, while its industry has an average P/E of 20.29. Over the last 12 months, DVMT's Forward P/E has been as high as 16.69 and as low as 11.96, with a median of 13.29.
Investors should also note that DVMT holds a PEG ratio of 1.82. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. DVMT's industry currently sports an average PEG of 1.83. Within the past year, DVMT's PEG has been as high as 1.83 and as low as 1.32, with a median of 1.46.
Another notable valuation metric for DVMT is its P/B ratio of 5.33. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. This stock's P/B looks solid versus its industry's average P/B of 12.80. Over the past year, DVMT's P/B has been as high as 5.38 and as low as 3.20, with a median of 4.17.
Value investors also frequently use the P/S ratio. This metric is found by dividing a stock's price with the company's revenue. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DVMT has a P/S ratio of 0.91. This compares to its industry's average P/S of 2.37.
Finally, investors will want to recognize that DVMT has a P/CF ratio of 10.37. This metric focuses on a firm's operating cash flow and is often used to find stocks that are undervalued based on the strength of their cash outlook. DVMT's P/CF compares to its industry's average P/CF of 34.85. Over the past year, DVMT's P/CF has been as high as 10.48 and as low as 7.24, with a median of 8.91.
These are just a handful of the figures considered in Dell Technologies's great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that DVMT is an impressive value stock right now.