Are Investors Undervaluing DHI Group (DHX) 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, 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.

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 holding a Zacks Rank of #1 (Strong Buy) and a Value grade of A. The stock has a Forward P/E ratio of 8.08. This compares to its industry's average Forward P/E of 22.93. Over the past 52 weeks, DHX's Forward P/E has been as high as 15.31 and as low as 5.67, with a median of 9.92.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock's price with the company's sales. This is a popular metric because sales are harder to manipulate on an income statement, so they are often considered a better performance indicator. DHX has a P/S ratio of 0.76. This compares to its industry's average P/S of 1.67.

Finally, investors will want to recognize that DHX has a P/CF ratio of 6.54. 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 stock's P/CF looks attractive against its industry's average P/CF of 10.26. Over the past 52 weeks, DHX's P/CF has been as high as 6.54 and as low as 2.01, with a median of 3.46.

These are only a few of the key metrics included in DHI Group's strong Value grade, but they help show that the stock is likely undervalued right now. When factoring in the strength of its earnings outlook, DHX looks like an impressive value stock at the moment.

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