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The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Deluxe (DLX - Free Report) . DLX is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 6.07. This compares to its industry's average Forward P/E of 9.91. Over the past 52 weeks, DLX's Forward P/E has been as high as 9.57 and as low as 5.69, with a median of 8.24.
Another notable valuation metric for DLX is its P/B ratio of 1.91. 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. DLX's current P/B looks attractive when compared to its industry's average P/B of 2.85. DLX's P/B has been as high as 3.12 and as low as 1.79, with a median of 2.39, over the past year.
Finally, investors will want to recognize that DLX has a P/CF ratio of 6.05. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.34. Over the past 52 weeks, DLX's P/CF has been as high as 9.26 and as low as 5.66, with a median of 7.34.
Value investors will likely look at more than just these metrics, but the above data helps show that Deluxe is likely undervalued currently. And when considering the strength of its earnings outlook, DLX sticks out at as one of the market's strongest value stocks.
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Should Value Investors Buy Deluxe (DLX) Stock?
The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.
Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.
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 Deluxe (DLX - Free Report) . DLX is currently sporting a Zacks Rank of #1 (Strong Buy) and an A for Value. The stock has a Forward P/E ratio of 6.07. This compares to its industry's average Forward P/E of 9.91. Over the past 52 weeks, DLX's Forward P/E has been as high as 9.57 and as low as 5.69, with a median of 8.24.
Another notable valuation metric for DLX is its P/B ratio of 1.91. 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. DLX's current P/B looks attractive when compared to its industry's average P/B of 2.85. DLX's P/B has been as high as 3.12 and as low as 1.79, with a median of 2.39, over the past year.
Finally, investors will want to recognize that DLX has a P/CF ratio of 6.05. This figure highlights a company's operating cash flow and can be used to find firms that are undervalued when considering their impressive cash outlook. This company's current P/CF looks solid when compared to its industry's average P/CF of 10.34. Over the past 52 weeks, DLX's P/CF has been as high as 9.26 and as low as 5.66, with a median of 7.34.
Value investors will likely look at more than just these metrics, but the above data helps show that Deluxe is likely undervalued currently. And when considering the strength of its earnings outlook, DLX sticks out at as one of the market's strongest value stocks.