Is DecisionPoint Systems (DPSI) Stock Undervalued Right Now?

DPSI

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.

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 use a variety of methods, including tried-and-true valuation metrics, to find these stocks.

In addition to the Zacks Rank, investors looking for stocks with specific traits can utilize our Style Scores system. Of course, value investors will be most interested in the system's "Value" category. Stocks with "A" grades for Value and high Zacks Ranks are among the best value stocks available at any given moment.

One company to watch right now is DecisionPoint Systems (DPSI - Free Report) . DPSI is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 11.72, while its industry has an average P/E of 29.93. Over the last 12 months, DPSI's Forward P/E has been as high as 35.68 and as low as 11.38, with a median of 18.86.

Finally, investors should note that DPSI has a P/CF ratio of 7.32. 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. DPSI's current P/CF looks attractive when compared to its industry's average P/CF of 21.86. Over the past 52 weeks, DPSI's P/CF has been as high as 18.58 and as low as 5.78, with a median of 9.04.

Value investors will likely look at more than just these metrics, but the above data helps show that DecisionPoint Systems is likely undervalued currently. And when considering the strength of its earnings outlook, DPSI sticks out at as one of the market's strongest value stocks.

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