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Is Deluxe (DLX) a Great Value Stock Right Now?

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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 rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

Zacks has developed the innovative Style Scores system to highlight stocks with specific traits. For example, value investors will be interested in stocks with great grades in the "Value" category. When paired with a high Zacks Rank, "A" grades in the Value category are among the strongest value stocks on the market today.

One company value investors might notice is Deluxe (DLX - Free Report) . DLX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with a P/E ratio of 7.16, which compares to its industry's average of 10.84. 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 7.65.

Another notable valuation metric for DLX is its P/B ratio of 2.30. The P/B ratio pits a stock's market value against 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 3.22. Over the past 12 months, DLX's P/B has been as high as 2.69 and as low as 1.79, with a median of 2.18.

Finally, investors will want to recognize that DLX has a P/CF ratio of 8.14. This data point considers a firm's operating cash flow and is frequently used to find companies that are undervalued when considering their solid cash outlook. DLX's P/CF compares to its industry's average P/CF of 11.70. DLX's P/CF has been as high as 8.57 and as low as 5.66, with a median of 7.08, all within the past year.

These are just a handful of the figures considered in Deluxe'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 DLX is an impressive value stock right now.


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