Is DHI Group (DHX) a Great Value Stock Right Now?

DHX

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

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 DHI Group (DHX - Free Report) . DHX is currently sporting a Zacks Rank of #2 (Buy), as well as an A grade for Value. The stock is trading with P/E ratio of 7.21 right now. For comparison, its industry sports an average P/E of 14.72. Over the past year, DHX's Forward P/E has been as high as 15.31 and as low as 6.96, with a median of 10.08.

Finally, investors should note that DHX has a P/CF ratio of 3.29. 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. DHX's P/CF compares to its industry's average P/CF of 11.91. Within the past 12 months, DHX's P/CF has been as high as 4.99 and as low as 2.01, with a median of 3.39.

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

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